There are three main credit reporting agencies (also known as credit bureaus) in the US: TransUnion®, Equifax®, and Experian®. To understand the role of these agencies better, take a closer look at the differences between TransUnion and Equifax.
Recommended: Which Credit Bureau Is Used Most?
What is the Role of Credit Reporting Agencies?
Credit reporting agencies collect the information necessary to maintain credit reports. All credit reporting agencies manage their own records, which means the information they have about a consumer can differ depending on the information that was reported to them. While the reports may vary, no one credit reporting agency carries more weight than the other.
What Are Credit Scores?
A credit score is a number used by lenders to determine the risk level associated with lending money to a consumer. A borrower’s credit score can influence if a lender decides to work with a borrower and if so how much credit, what terms, and how high of an interest rate they end up getting.
Credit scores are based on a consumer’s credit report. Everyone has more than one credit score as these scores are calculated by the three main credit reporting agencies.
Some lenders use internal scoring models as well, but generally, it’s more common to work with lenders using one of the three main agencies’ reports to inform their lending decisions.
Check your score with SoFi Relay
Track your credit score for free. Sign up and get 1,000 SoFi Reward points.*
What Are Credit Reports?
A credit report details information about a consumer’s financial life, such as:
• Payment history
• Outstanding balances
• Length of credit history
• Applications for new credit accounts
• Types of credit accounts (such as mortgages or credit cards)
Credit reports from each of the three major credit bureaus can be accessed annually free of charge.
Recommended: What Is Considered a Bad Credit Score?
How Does Equifax Calculate Credit Scores?
An Equifax credit score isn’t used by lenders or creditors to assess a consumers’ creditworthiness. Instead, many lenders use FICO Scores® to help determine a potential borrower’s creditworthiness. FICO uses credit scores from the three reporting agencies, including Equifax and Transunion, to determine their score. Equifax recommends aiming for a score of 739 or higher if a “good” score is desired.
The Equifax credit score model falls on a credit rating scale that starts at 280 and ends at 850. The higher a score is on this scale, the better indication that the consumer poses a lower risk to creditors.
TransUnion and Equifax calculate credit scores differently. An Equifax credit score is an educational credit score. The point of this credit score is to provide consumers with the knowledge to help them predict their general credit position.
How Does TransUnion Calculate Credit Scores?
When it comes to TransUnion credit scores, this agency uses an outside model, the VantageScore® 3.0 model. The VantageScore scoring model ranges between 300 and 850 points. According to TransUnion, A “good” credit score to have on the TransUnion and VantageScore 3.0 model is between 661 and 720. VantageScores are an alternative to FICO Scores that are used by some lenders to inform their lending decisions.
What They Offer
Alongside credit scoring and credit reports, both of these credit agencies have unique offerings to help consumers understand their credit better and to provide protection against fraud.
TransUnion members ($24.95 per month) gain access to:
• Unlimited access to credit score and reports that are updated daily
• Recommendations to help improve credit score
• Their product, Credit Lock Plus, which allows individuals to lock their TransUnion & Equifax reports
Signing up for Equifax Complete ($9.95 per month) gives members access to:
• Equifax credit report monitoring
• Daily access to VantageScore credit score
• Dedicated ID Restoration Specialists to help members recover from identity theft
• Up to $500k in identity theft insurance
TransUnion vs. Equifax: Which is most accurate?
So, which credit report is most accurate? When it comes to accuracy, all three credit reporting agencies are responsible for ensuring that credit reports are accurate. No one agency is more accurate than the other. That being said, mistakes can happen.
Consumers may want to keep a close eye on their credit report to make sure that mistakes haven’t occurred. Especially as these mistakes can negatively impact credit scores. To report errors found on a credit report, consumers can follow this process:
1. After finding errors on a credit report, write a letter that disputes these errors and include any supporting documentation that can strengthen the case against the error. You can find a sample letter here .
2. Send the letter and documentation to the credit reporting agency and the information provider (like a bank or credit card company) that reported the inaccurate information to the credit reporting agency in question. Both the credit reporting agency and the information provider will be responsible for fixing credit report inaccuracies or incomplete information.
3. If the written dispute does not result in the mistake being resolved, the next step would be to file a complaint with the Consumer Financial Protection Bureau.
TransUnion disputes can be filed on their website or by mail. After the documentation has been received, it can take up to thirty days to resolve the dispute.
Try to include as much of the following information as possible in the communication:
• Partial account number of the disputed item (from credit report)
• Current address
• TransUnion file number (if applicable)
• Social Security number
• Date of birth
• Name of the company that reported the item that needs disputing
• Reason for the dispute
• Any corrections to personal information that needs to be made
Disputes can also be made by phone.
Equifax disputes can be made online, by phone, or by mail. Consumers will generally want to provide as much of the following information and documentation as possible or applicable:
• Valid driver’s license
• Birth certificate
• Copy of a utility bill
• Current bank statements with account information
• Letters from a lender showing the account in question has been corrected
• Proof that an account error was the result of identity theft
• Bankruptcy schedules and other court documents
• Student loan disability letters
• Cancelled checks
Results are generally completed within 30 days.
Transunion and Equifax are two of the major credit bureaus in the US. They collect information about a consumer’s financial life, such as their payment history, applications for new credit, and existing credit. This information is recorded in the form of a credit report.
Based on information in the credit report, each bureau determines credit scores based on their own scoring model.
Staying on Top of Credit Scores
We’re all busy. Between work, friends, and family, it’s easy to see why monitoring credit scores isn’t a top priority for many consumers. This is where SoFi Relay can help. SoFi Relay allows users to stay on top of their financial life in a really holistic way.
Not only can users track all of their financial accounts and spending in one place, but they can also track their credit score, powered by TransUnion. Weekly updates make it easy to be aware of score changes and to intervene if it seems a mistake has been made.
*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the Rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed into SoFi accounts such as cash in SoFi Checking and Savings or loan balances, Stock Bits, fractional shares and cryptocurrency subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. A hard credit pull, which may impact your credit score, is required if you apply for a SoFi product after being pre-qualified.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s
The information provided is not meant to provide investment or financial advice. Investment decisions should be based on an individual’s specific financial needs, goals and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . The umbrella term “SoFi Invest” refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Third-Party Brand Mentions: No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.