Why Your TransUnion and Equifax Credit Scores Are Different: Credit Score Guide 2024

Last Updated: March 26, 2025

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Equifax, TransUnion, and Experian dominate credit reporting, yet their scores often differ, creating confusion. These discrepancies stem from variations in data collection and interpretation methods. Understanding your Equifax credit score and how it compares to others is crucial for effective financial management.

The differences in credit scores can significantly impact your financial outlook. Factors like incorrect information or naming errors on your Equifax credit report can lead to unexpected variations. Knowing why these disparities occur and how to improve your Equifax credit score is essential for maintaining your credit health and making informed financial decisions.

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Who Are the Credit Reporting Agencies? Understanding Where Your Credit Scores Come From

Understanding your Equifax credit score is crucial for your financial health. Many worry about poor scores, often questioning the worst or lowest possible credit scores. To maintain accuracy, it's essential to verify your credit information across all agencies: TransUnion, Equifax, Experian.

Creditors report your payment history to one or more credit bureaus. After six months of credit history, FICO or VantageScore models generate your Equifax credit score based on five factors: payment history (35%), credit utilization (30%), credit age (15%), credit mix, and application history.

Payment history significantly impacts your Equifax credit score, with late payments negatively affecting it. Credit utilization, the ratio of used credit to available credit, is the second most important factor. The age of your credit accounts also plays a role, with longer credit histories generally improving your score. Learn more about how to build credit when you have none.

Your Equifax credit score is influenced by your credit mix and application history, each accounting for 10% of the score. A diverse credit portfolio, including various types of loans, can positively impact your score. However, be cautious with credit applications, as "hard pulls" can temporarily lower your Equifax credit score, while "soft pulls" have no effect.

Who Are the Three Major Credit Bureaus?

There are three different major credit bureaus: TransUnion, Equifax, Experian. Each credit bureau collects financial data from creditors. The data is then scored by FICO or VantageScore.

While Equifax credit scores are widely used, specialized agencies like CoreLogic Credco offer additional financial data services. Your Equifax credit score can be accessed by authorized parties such as employers or lenders. Score differences between bureaus are common due to varying data collection and scoring models. If significant discrepancies arise, investigate the cause. For added security against fraud, consider options like a CoreLogic credit freeze, which restricts access to your credit report.

Types of Credit Scores: FICO vs VantageScore

Credit reports often use one of two credit scores –FICO scoring model or VantageScore scoring model. FICO is the most common. The credit bureaus create a FICO score based on what is reported to them. This accounts for any difference in FICO scores among different credit bureaus.

Your credit score is reported as a three-digit number with the higher the number, the less credit usage rate and better the score. VantageScore is an algorithm developed that uses the consumer credit information on file. It is particularly good for people with thin credit history or very young history. VantageScore and FICO use the same score divisions to determine their credit scores: 

• Excellent = 750 and above
• Good = 700-749
• Fair = 650-699
• Poor = 550-649
• Bad = Below 550

Good credit scores are those over 670 for FICO,  with a 722 FICO score being considered a strong indicator of financial responsibility. A VantageScore score over 661 can be considered good. The score differences come from the different reported data and their different credit scoring models. However, people often question their scores, wondering things like "Is a 744 credit score good or bad?" or "Is a 777 credit score good or bad?"

The major difference between FICO and non-FICO scores is that each reporting company uses a slightly different model based on each company's preferences. FICO requires a credit history that is at least six months old and with activity within the last six months. Your three credit scores should be roughly the same, with Equifax credit scores being lower than others in many cases.

Why is My Equifax Score Lower Than TransUnion?

Many people wonder why their Equifax credit score is often lower than their TransUnion score. This difference arises because TransUnion factors in personal and employment data, while Equifax focuses solely on credit information. Despite these variations, both Equifax and TransUnion scores provide valid indicators of your financial responsibility.

TransUnion's scoring model typically weighs employment history and residential stability more heavily than Equifax does. For example, if you've maintained the same job and address for several years, TransUnion might award extra points for stability that Equifax doesn't include in its calculations. Additionally, TransUnion may be more lenient with certain negative items like late payments, giving them slightly less impact on your overall score.

Another significant factor is that lenders don't always report to all three bureaus simultaneously. Some creditors may report to TransUnion faster than Equifax, meaning recent positive payment activity might appear on your TransUnion report first, temporarily creating a score gap between the two bureaus.

The scoring models themselves also differ. While both use FICO or VantageScore algorithms, they customize these models, resulting in different interpretations of the same credit activities. For example, Equifax's model might assign more negative weight to high credit utilization than TransUnion's model does.

TransUnion's scoring model typically weighs employment history and residential stability more heavily than Equifax does. For example, if you've maintained the same job and address for several years, TransUnion might award extra points for stability that Equifax doesn't include in its calculations. Additionally, TransUnion may be more lenient with certain negative items like late payments, giving them slightly less impact on your overall score.

Another significant factor is that lenders don't always report to all three bureaus simultaneously. Some creditors may report to TransUnion faster than Equifax, meaning recent positive payment activity might appear on your TransUnion report first, temporarily creating a score gap between the two bureaus.

The scoring models themselves also differ. While both use FICO or VantageScore algorithms, they customize these models, resulting in different interpretations of the same credit activities. For example, Equifax's model might assign more negative weight to high credit utilization than TransUnion's model does.

Why Are My TransUnion and Equifax Scores So Different?

It's normal to see variations of 20-40 points between your TransUnion and Equifax credit scores. These differences aren't errors—they reflect the unique approaches each bureau takes to evaluate your creditworthiness.

The primary reasons for these differences include:

1. Different Information in Your Reports: Not all lenders report to all bureaus. Your auto loan might report to Equifax but not TransUnion, while your credit card company might report to TransUnion but not Equifax. This creates information gaps that result in score variations.
2. Different Timing of Updates: Each bureau updates their records at different times. If TransUnion updated your report yesterday but Equifax won't update until next week, recent payments or credit activities might be reflected in one score but not the other.
3. Different Scoring Models: While both bureaus use similar scoring frameworks (FICO or VantageScore), each customizes these models. TransUnion might weight your payment history at 38% of your score while Equifax weights it at 35%.
4. Regional Variations: Depending on where you live, one bureau might have more comprehensive data. TransUnion historically has stronger reporting in western states, while Equifax has traditionally had better coverage in the eastern U.S.
5. Industry-Specific Scores: When you apply for specific types of credit (auto loans, mortgages), lenders often use industry-specific score versions. TransUnion and Equifax might emphasize different factors in these specialized scores.

If you notice extreme differences (more than 100 points), this could signal a reporting error or potential identity theft issue that needs immediate investigation.

How Do I Know If My Credit Report Is Correct?

Mistakes happen during your credit history, so always check your credit regularly from all three credit reporting agencies: TransUnion, Equifax, Experian. There are several ways to access your credit report from these bureaus. You are legally entitled by federal law to one free copy of your report per agency per year.

For instance, request one agency report in January, one of the second in May, and one from the final in September. This is a fairly simple way to keep an eye on your financial information and your credit history. Many people have discovered  identity theft can ruin your credit score from a sudden drop in your credit report.  Access free credit reports and annual credit reports through AnnualCreditReport.com.

Another way to monitor your credit report regularly is to sign up to free credit score websites, or websites like CreditSesame or Credit Karma. Credit Karma will actually try to help you build your credit score by suggesting credit card offers that you could be eligible to sign up for.

Credit Karma also updates you with breaches to credit breaches that include any of your information. Since Credit Karma is free, it is a good way to keep an eye on your credit profile and your overall credit history and health.

Additionally, review any specific credit accounts you've opened, such as a Best Buy credit card, to ensure they are correctly reported and there are no unauthorized transactions.

Once you have your credit reports, check them carefully. Look for:

• Correct name
• Correct address
• Correct Employer
• Lines of credit that you have or have not authorized
• Credit cards that you have or have not authorized
• Personal Loans that you have or have not authorized
• Aged out debt issues like bankruptcy (generally 10 years), collections (generally 7 years)
• Aged out judgments based on your state’s statute of limitations 
  

If you find an error, send COPIES of documentation to the credit bureau along with explanations or the errors. You may have to do it several times and stay on top of them. If you are denied credit based on your credit score, you can request the reason and a new report. 

If you have had identity theft, you can contact each of the major credit bureaus individually and place a fraud freeze on your credit until you get the issue solved.