Which Credit Score Matters More: TransUnion or Equifax?

As two of the three major credit bureaus, both your TransUnion and Equifax credit scores are potentially important but are often different because they use separate scoring models. 

Further, scores often differ based on the credit score version used and the information that each credit reporting agency may or may not have received.   

How Are the Two Scores Different?

A consumer credit score is a three-digit number between 300 and 850 that a prospective lender such as those that offer financing for home mortgages, car loans, personal loans, or credit cards might use for assessing a borrower’s creditworthiness.

Experian, TransUnion, and Equifax are the three primary agencies that receive consumer credit information and compile credit history reports.

One reason why there are different credit scores is that each lender does not necessarily report their credit account activity to all three credit bureaus.

Another reason why your Equifax credit score and TransUnion score might differ is that there are two primary credit scoring companies. These include the Fair Isaac Corporation (FICO) and VantageScore, which each use different credit scoring models.  You can also check out the Best Way to Check Your Credit Score here.

The Equifax credit scoring model uses five primary metrics and each has a certain level of weight or influence as follows: 

• Payment History (35%): The largest influence on whether you have a good credit score or a bad credit score is your borrowing and repayment history.
• Amounts Owed (30%): Your overall amount of debt plays a role; however, your credit utilization rate is also very important. Your credit utilization rate is a percentage calculated by dividing the sum of all credit card balances by the sum of all credit card account limits. Utilization rates below 30% are typically considered good.   
• Length of Credit History (15%): Demonstrating a multi-year history of responsible credit use is important.
• Credit Mix (10%): Showing creditworthiness across a “mix” of installment loans, revolving credit accounts, or mortgage loans helps your credit score.
• New Credit (10%): Avoid applying for or opening too many credit accounts in short periods of time. Each of these instances may create a “hard credit inquiry” on your credit report that might suggest unexpected financial problems exist.

The TransUnion VantageScore model uses a similar group of metrics as follows:

• Payment History: 40%
• Length & Type of Credit: 21%
• Credit Utilization: 20%
• Total Account Balances: 11%
• Recent (New) Credit Activity: 5%
• Available Credit: 3%

Do Lenders Look at TransUnion or Equifax?

Lenders may view credit scores from one or more of the major credit bureaus. According to FICO, roughly 90% of lending decisions are based on FICO score data.

FICO creates scoring models for Equifax, Experian, and TransUnion as well as a host of industry-specific scoring models. 

While some lenders in the credit card or auto loan ma