The FICO® Score is used by 90% of top lenders, but there are at least 16 versions of that model in use. Checking the widely used FICO® Score 8 can give you a good indication of how lenders will view your credit profile.
FICO ® Scores are the most widely used credit scores—90% of top lenders use FICO ® Scores.
There are a number of reputable agencies that offer credit reports and credit score summaries. The most popular ones in Australia are Equifax, Experian and Illion, and to get your report you'll need to prove your identity using official documents such as your driver's licence, passport or Medicare card.
When you are applying for a mortgage to buy a home, lenders will typically look at all of your credit history reports from the three major credit bureaus – Experian, Equifax, and TransUnion. In most cases, mortgage lenders will look at your FICO score.
The most accurate credit scores are the latest versions of the FICO Score and VantageScore credit-scoring models: FICO Score 9/10 and VantageScore 3.0/4.0.
The main reason your TransUnion and Equifax scores may look different from one another is that the companies use different algorithms to compute your score.
Scores from Equifax and TransUnion are equally accurate as they both use their own scoring systems. Both credit agencies provide accurate scores, and whichever your lender opts for will provide suitable information.
TransUnion vs. Equifax: Which is most accurate? No credit score from any one of the credit bureaus is more valuable or more accurate than another. It's possible that a lender may gravitate toward one score over another, but that doesn't necessarily mean that score is better.
Many lenders furnish information to all three major credit bureaus, but some may furnish information to just one or two of them. This difference in data results in distinct credit reports with each bureau and can lead to differing credit scores across the bureaus.
Your Experian score may be higher than what another credit bureau shows because Experian calculates credit scores using its own unique scoring model.
There are three main credit reporting bodies in Australia: Equifax, Illion and Experian. For more information about Credit Reporting Bodies please visit the Office of the Australian Information Commissioner.
As it's the largest of the credit reporting organisations, most Australian banks use Equifax credit scores in their assessments of credit worthiness. However, they can also use information from the other credit reporting organisations, as well as their own internal risk assessment measures.
More companies use Experian for credit reporting than use Equifax. This alone does not make Experian better, but it does indicate that any particular debt is more likely to appear on an Experian reports.
With a free myEquifax account, you can receive free Equifax credit reports, place a security freeze, fraud alert or submit a dispute. A myEquifax account is FREE, and for anyone to easily view and monitor their Equifax credit report and needs credit report assistance.
Many credit card companies rely on Equifax to check creditworthiness before approving a credit card application. Some of the major credit card companies that use Equifax include American Express, Bank of America, Capital One, Chase, Citi, Discover, and Wells Fargo.
Experian is considered more accurate as lenders rely on it for credit evaluations. Not competing services: Clearscore generates revenue through commissions on financial product recommendations, while Experian charges for access to its data.
While Experian is the largest bureau in the U.S., it's not necessarily more accurate than the other credit bureaus. The credit scores that you receive from each of these bureaus could be the same, depending on which scoring model they use.
Similar to Experian, Equifax is also a multinational credit reporting agency. It is Australia's largest consumer credit reporting agency. It collects credit information reported by financial institutions and calculates your Equifax credit score accordingly.
Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.
Equifax and TransUnion have different scores because slightly different information is reported to each credit reporting agency. In addition, TransUnion reports your employment history and personal information. Equifax's different credit scoring model results in lower scores.
FICO® credit scores are the auto industry standard for determining a potential buyer's creditworthiness. Using a variety of factors, the company will give you a three digit score ranging from 300 (lowest possible) to 850 (highest possible).
There are many reasons why a credit score doesn't change, such as the lender didn't report to the bureaus yet, your utilization is too high, you missed a payment, you applied for too many new accounts or you don't have enough available credit.
Which is why Experian has a slight edge over Equifax, as it tends to track recent credit searches more thoroughly. For example, Experian includes the following information in a credit report: Personal information - any piece of information that can be used to identify you.
Lack of transparency, not only put the company at greater levels of company risk, it also served to unknowingly expose millions of consumers to higher levels of personal risk. This in turn makes the General Public less forgiving of Equifax in how it handled the issue.