Friday, June 14, 2013

Difference Between Credit Score Agencies

Difference Between Credit Score Agencies

The three major credit bureaus, Experian, Equifax and TransUnion, have more similarities than differences. All of them are essential in determining your credit history and ability to obtain loans and financing for a variety of reasons.

Definition

    A mathematical formula calculates your credit score (also known as a FICO score) by taking the information from your credit history (timeliness of payments on debts, revolving credit and the like) and comparing that to the credit history of millions of other individuals.

Number

    Credit scores range between 300 and 850. The higher the number, the better that reflects upon your ability to pay your debts in a timely and consistent manner. Typically, a lender pulls up your credit score from all three bureaus, and averages the three numbers to determine your overall FICO score.

Experian

    Headquartered in Dublin, Ireland, Experian aids consumers and businesses on a global scale. Its principle business lines are credit services, decision analytics, marketing services and interactive resources for consumers.

Equifax

    In business for over 100 years, Equifax maintains its headquarters in Atlanta, Georgia. It provides commercial, consumer and personal information solutions. Its services include risk management, marketing database, data management, fraud prevention and personal finance management solutions.

TransUnion

    The Union Tank Car Company created TransUnion in 1968 as a parent holding company, and it has since then become a leading business intelligence provider. TransUnion focuses on information, as well as international and consumer services.

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