Here are some of the possible causes of a huge difference between Equifax credit scores and TransUnion scores; FICO credit scores are not identical across the various credit bureaus and may be calculated based on slightly different models, and the information contained in each credit bureau’s credit report. If you find that your Equifax and TransUnion scores are 100 points apart or more, then there are some significant disparities in the information at the two bureaus.
The one major reason why such a large difference could be explained is that some credit bureaus would have negative information that the other credit bureaus do not have. For instance, if there is information like past due on a credit account, it may indicate a delinquency in one credit report and may not appear in the others. When you have multiple late payments within a short time and even a single 90-day late payment, your score may reduce by over 100 points. So if the only negative item being reported is that one, then it makes your score much lower than what TransUnion would report.
Thus, the source and type of accounts you’ve might be the cause of the differences in the scores. The majority of credit scoring models are less favorable to negative information on these types of accounts, particularly credit cards and personal loans. For instance, if Equifax has reported delinquencies on that particular type of account while TransUnion has not then that could account for the 100-point difference.
It is also important to note that comparing ratios may be influenced by the total accounts of the specified elements. For instance, you could have, for example, canceled certain credit card accounts that are still reflected on Equifax but are not indicated in TransUnion. Since closed accounts can often negatively affect the credit rating, this could potentially mean that the score that Equifax offers is lower.
Besides, the two credit bureaus appear to have different dates of last activity on your credit accounts. For example, if Equifax reports that you have been recently active with your credit cards, while TransUnion has reported that you have been inactive for a longer period, then this may cause a slight variation in favor of TransUnion. Contemporary activity shows that you are extensions to credit while idle accounts give less information.
Moreover, the totals which relate to debt amounts can also be stated differently by the bureaus. Compared with the case of utilization, if Equifax records show higher unpaid balances on your total revolving credit accounts such as credit cards then a higher utilization as seen by Equifax will lower your score compared to TransUnion where utilization is better. For this reason, even a small difference in reported balances could affect the scores, particularly for individuals who have large balances on their cards from one month to the other.
This can also be because you have different information with one credit bureau that has since deleted the negative item, while the other bureaus’ records do not contain the same information, or its processing was not properly done. Conflicts that result in alterations or even removals on your Equifax report would not impact your TransUnion score in case they are not reflected there too.
This is because sometimes, the difference is because of reporting errors and not necessarily negative elements that you see on only one credit bureau. If Equifax’s records indicate an account is delinquent when in fact, you have been timely in your payments, your Equifax credit score may have been reduced by 100 points or more for no just cause.
If you have a complaint over a huge difference in scores between Equifax and TransUnion then you should check your entire credit report from both bureaus. It involves setting the two reports from Equifax and TransUnion side by side and analyzing which aspects are negatively influencing one score, but not the other. The information that is printed only in Equifax or TransUnion is likely to be the reason for the scoring difference.
Whether this scoring difference is due to differences in methodology or other reasons, the best approach for handling it is to dispute erroneous entries and work on the negative factors that affect only one of the scores. Disputing any information you receive from Equifax and TransUnion and having it removed due to its inaccuracy is also effective in bringing balance to the scores. Making payments to your accounts, bringing the accounts current, and reopening inactive accounts are also ways that will increase your Equifax score more and more to make it align with your TransUnion score. Remember it’s critical to keep scores with all the major bureaus in mind, which means you should pay particular attention to your Equifax score.
Call now for expert credit repair services: (888) 803-7889
Read More:
Can I freeze my credit reports for free?
Does having a cell phone build credit?
Where can I see my actual credit score?
How much does Equifax cost per month?
