Experian vs. Equifax vs. TransUnion: Does One Credit Bureau Reign Supreme?

When you read any article on credit, whether it be about building, repairing, or reporting, you always hear the same three names: Experian, Equifax, and TransUnion. These are the three giants of the personal credit world. 

But what is a credit bureau exactly? Each company gathers financial information on you and presents your credit profile with a three-digit number attached called your credit score. This number influences a lot in our lives. From the credit cards we get to the mortgage rates, and even the apartments we’re approved for. 

Let’s take a head-to-head look at Experian vs. Equifax vs. TransUnion.

Highlights/Key Takeaways

• Experian, Equifax, and TransUnion are the three main credit bureaus in the United States.
• Each bureau has slightly different ways of collecting information to generate credit reports and credit scores.
• Lenders (i.e., mortgage, personal loans, credit cards, etc.) look at your credit report from one or more of the credit bureaus to determine how much to lend and what your terms will be. 

What Are the Main Differences Between Experian, Equifax, and TransUnion?

So, what exactly is the difference between Experian, Equifax, and TransUnion? This table can help you discern the little details that vary between each company. 

VantageScore vs. FICO: What’s the Difference?

While the three major credit bureaus all gather and report on consumer credit data, each uses different models to calculate credit scores, as you’ll see from the table above. Two of the most commonly used scoring models are FICO and VantageScore.

• FICO scores are developed by the Fair Isaac Corporation, and they're widely used by lenders to determine creditworthiness. FICO scores range from 300 to 850 and take into account various factors, including payment history, credit utilization, length of credit history, and types of credit in use.
• VantageScore was developed by the three credit bureaus and is gaining popularity as a credit scoring model, as it standardizes the model used by the credit bureaus. VantageScore also ranges from 300 to 850 and it considers similar factors to FICO, such as payment history, credit utilization, length of credit history, and types of credit in use.

While FICO scores are still the most widely used by lenders, VantageScore is gaining traction as an alternative scoring model. 

What is Experian and How Does it Calculate Credit Scores?

The first beginnings of what would become Experian began as far back as 1803, but the modern Experian we think of today was founded in 1996.

As a company, Experian collects and maintains information on consumers’ credit activity and payment history. It uses this information to calculate credit scores (numerical representation of a person's creditworthiness). Experian's credit scores range from 300 to 850, with higher scores indicating better creditworthiness.

Here are some of the products and features offered by Experian:

• Free credit monitoring: Experian offers free credit monitoring, which alerts you to any changes in your credit report, such as new accounts or inquiries, that could indicate fraud.
• Three-bureau reports and FICO scores: Experian offers a three-bureau credit report and FICO score package, which includes credit reports and scores from all three major credit bureaus. You’ll pay a one-time fee of $39.99 to access this package. 
• Free annual credit report: As is required by federal law, Experian provides consumers with a free copy of their credit report once a year via annualcreditreport.com.
• Experian CreditLock: Experian CreditLock’s feature allows you to lock and unlock your Experian credit report as needed. This can help prevent unauthorized access to your credit report and protect your personal information from hackers. Plus, you’ll get up to $1 million in identity theft insurance.
• Credit score disclosure: Experian allows you to check your VantageScore® for a low fee. 

What is Included on Experian Credit Reports?

Experian offers free credit reports that show your FICO score. You’ll get your new report each month which also includes a breakdown of the factors that affect your score. You’ll also see a breakdown of all of your accounts, payments, and personal information. 

On top of the credit report, you’ll also get daily texts and emails if a significant change occurs to your score. 

How Experian Ranks Credit Scores 

When you look at the poor, fair, good, and excellent ratings from the different bureaus, the numbers and language around them will vary just slightly. That’s simply because each bureau has a slightly different ranking method. 

Experian breaks it down like so:

• Poor: 300 to 579
• Fair: 580 to 669
• Good: 670 to 739
• Very good: 740 to 799
• Exceptional: 800 to 850

What is Equifax and How Does it Calculate Credit Scores?

Founded in 1899, Equifax has quite a few years on Experian. It also collects and maintains information on credit activity and payment history for all of the consumers in the U.S. Equifax calculates credit scores with this information and provides a score that also ranges from 300 to 850.

Equifax’s features list is equally as impressive as Experian’s (if not a little more expensive):

• Equifax Complete Family Plan: This product provides credit monitoring and identity theft protection for up to four family members. You’ll pay $29.95/month for this plan option. 
• Equifax Complete: This product gives you daily access to your credit reports and credit scores, as well as credit monitoring and alerts. This is just $9.95/month. 
• Equifax Complete Premier: This product provides more advanced credit monitoring features, including alerts for changes to credit limits, addresses, and new accounts. Plus, you’ll have access to lost wallet assistance in the event you lose your cards and IDs. 
• Equifax ID Patrol: For those looking to focus mostly on ID protection, there’s a $16.95/month option that gives you the ability to lock your credit at will, a dark web WebScan, automatic fraud alerts, and more. 
• Equifax Credit Monitor: If you’re more interested in just the credit portion of Equifax's products, this option offers credit monitoring and alerts for changes to credit reports, as well as access to credit scores and reports. You’ll pay just $4.95/month. 
• Equifax Core Credit: This is Equifax’s most basic (and free) product that provides access to credit reports and scores from all three major credit bureaus, as well as basic credit monitoring and alerts.

What is Included on Equifax Credit Reports

Equifax will have much of the same information on its credit reports at TransUnion and Experian. You’ll find the following information on a report you pull from Equifax:

• Personal information such as your SSN, address, and DOB. 
• Account information from lenders that report to Equifax. This report includes information about each account and the payment history associated with them. 
• Inquiry information, whether they’re "soft" or "hard" inquiries from pre-approvals or full-length applications. 
• Bankruptcies, which are public record. 
• Collections accounts including any past-due accounts that have been sent to a collection agency.

How Equifax Ranks Credit Scores 

Equifax has pretty similar numbers to Experian, ranking its scores as such:

• Poor: 300 to 579
• Fair: 580 to 669
• Good: 670 to 739
• Very good: 740 to 799
• Excellent: 800 to 850

What is TransUnion and How Does it Calculate Credit Scores? 

TransUnion operates similarly to Experian and Equifax, collecting information from consumers to create a credit score ranging from 300 to 850. The company was founded in 1968 by Union Tank Car Company, a railcar leasing operation. 

TransUnion offers the following products and services:

• Credit monitoring: TransUnion offers credit monitoring services to help individuals keep track of their credit reports and scores. This service alerts you to any changes to your credit report and costs $29.95/month.
• Credit protection: TransUnion offers a paid credit protection service, which is part of the $29.95/month you pay for the credit monitoring package. You get instant email alerts if your credit suddenly changes.
• Score simulator: TransUnion's score simulator allows individuals to see how different credit behaviors, such as paying off a credit card balance or opening a new account, could affect their credit score.
• Free credit report: Like the other two bureaus, TransUnion also provides consumers with a free copy of their credit report once a year.
• Dispute credit report: TransUnion allows individuals to dispute any errors or inaccuracies on their credit report easily through the site.
• TransUnion credit report: TransUnion offers credit reports and scores for purchase, which provide even more detailed information on credit activity and payment history.
• Fraud alert: TransUnion offers fraud alerts that notify individuals if there is any suspicious activity on their credit report.
• Active duty credit monitoring: TransUnion offers credit monitoring for members of the military who are on active duty.
• TrueIdentity: TransUnion's TrueIdentity service provides free identity theft protection, including monitoring for unauthorized use of personal information and access to credit reports and scores. Plus, you’ll get access to $25,000 in ID theft insurance. 

What is Included on TransUnion Credit Reports

Again, TranUnion’s reports will look similar to the other bureaus, with the following information listed:

• Identifying information
• Public records
• Collections accounts
• Credit/account history
• Inquiries

How TransUnion Ranks Credit Scores

TransUnion’s credit score ranking system is slightly different from Experian and Equifax. Its scores look like so:

• Very poor: 300 to 600
• Poor: 601 to 660
• Fair: 661 to 720
• Good: 721 to 780
• Excellent: 781 to 850

Experian vs. Equifax vs. TransUnion: Monitoring Your Credit 

Even though all three bureaus have many similarities, you’ll want to check your score through each of them. Why? Well, for several reasons:

• Watching your progress: By monitoring your credit reports and credit scores regularly, you can keep track of your creditworthiness over time. This can help you see how your credit behaviors, such as paying off debt or making on-time payments, are affecting your credit score. 
• Catching errors: Credit reports can contain errors, such as accounts that don't belong to you or payments that were reported as late when they were actually on time. 
• Protecting against fraud: Monitoring your credit reports can also help you detect and prevent identity theft. If someone opens a new account in your name or uses your credit information without your permission, it will show up on your credit report. 
• Making informed decisions: Your credit score can affect your ability to get approved for credit and loan products. By monitoring your credit score, you can get an idea of how lenders view your creditworthiness.

How To Check Your Credit With Experian

When you go to check your credit score with Experian, you can get your free score with no credit card needed. Simply provide some personal details and make an account and you’ll see your FICO® Score 8. If you see that your score is a little low, you can also use ExperianBoost for free to potentially boost your score by a few points. 

How To Check Your Credit With Equifax

You can get a free monthly Equifax report by creating a myEquifax account in just a few seconds. You’ll be shown your VantageScore when you check through Equifax. 

How To Check Your Credit With TransUnion 

TransUnion offers monthly credit reports from all three credit reporting agencies and daily ones from TransUnion specifically. All you need to do is take a few seconds and create a TransUnion account. 

As an aside, if you ever need to report an error on your credit report, you can find how to contact credit bureaus here. 

How Lenders Use the Credit Bureaus 

Lenders use credit reports and credit scores from the three major credit bureaus to make their lending decisions. These reports contain information such as payment history, credit utilization, and the overall length of your credit history. Credit scores are just a numerical representations of a person's creditworthiness, based on this information in their credit report.

When a borrower applies for credit, such as a mortgage, auto loan, personal loan, or credit card, the lender may check one or more of the borrower's credit reports and credit scores. However, borrowers don’t usually let you know ahead of time which credit reports and scores the lender will use.

Here's how certain lenders work with various credit bureaus and credit scoring models:

• Mortgages: Mortgage lenders typically check all three credit reports and scores from the major credit bureaus. They may use a specific credit scoring model, such as FICO or VantageScore, to determine the borrower's creditworthiness. While the exact score you need varies depending on the mortgage type you’re applying for. Additionally, lenders look for low debt-to-income ratios and stable employment.
• Auto loans: Auto lenders also check all three credit reports and scores from the major credit bureaus, but Equifax is the most often used. They may use a specific credit scoring model, such as the FICO Auto Score, which takes into account factors such as the type of vehicle being financed and the borrower's payment history on previous auto loans. 
• Personal loans: Personal loan lenders may check one or more credit reports and scores from the major credit bureaus. Personal loan lenders typically look for borrowers with good credit scores, low debt-to-income ratios, and a healthy income history.
• Credit cards: Credit card issuers typically check at least one report for one of the major bureaus. Additionally, credit card issues may look at your FICO Bankcard Score, which has a range of 250-to-900. It’s specifically a credit-card-based model that helps lenders understand how likely it is that a borrower will be 90 or more days late on a credit card payment in the next two years.

Other Ways Your Credit Matters

Credit reports and credit scores are not only important when you’re applying for credit, but they can also affect other areas of your life. Something many people don’t realize until it’s too late.  Here are some ways other people/organizations might use credit reports from the credit bureaus:

• Landlords: Landlords may check a potential tenant's credit report as part of the rental application process. In fact, most landlords do. A poor credit history, including missed payments or collections accounts, may signal to the landlord that the tenant may be unreliable.
• Utility companies: Utility companies, such as electric or gas providers, may check a potential customer's credit report before setting up service. If a person has a poor credit history, the utility company may require a deposit to ensure future payments
• Employers: Some employers may check a job applicant's credit report as part of the hiring process, particularly for positions that involve financial responsibilities. 
• Insurers: Insurance companies often check a person's credit when determining insurance premiums. A poor credit history may indicate that the person is a higher risk and may be more likely to file a claim. In turn, the insurer will often settle on a higher premium to offset this risk. 

Improving Your Credit 

Your score won’t improve without you putting in any effort. To get your score into the good range, or, better yet, the excellent credit range where lenders will offer you the best terms, you’ll need to adopt these habits:

• Create good financial habits: This includes paying bills on time, creating and sticking to a budget, setting up automatic payments, etc. 
• Tackle your debt: Your debt makes up a huge portion of your credit score. Paying down your debts, whether it be credit card debt or loans, can help your score gradually creep up. 
• Manage your credit utilization: If you have limited credit and have maxed it out, your credit utilization ratio is going to be high, which will drag down your score. Take care to balance the amount of debt you have vs. the total credit you have available. 
• Build your credit history: The only way to build your credit history is to start using credit. Apply for a secured card or loans as needed (and when you can afford to), and make sure to keep your oldest accounts open so the length of your credit history doesn’t shrink.  
• Only apply for new credit when you need it: Don’t constantly apply for credit cards just because your credit qualifies you to do so. This can signal to credit bureaus that you may not be the best at managing your money. 
• Watch for and correct credit report errors: Errors on credit reports happen and can negatively affect your score. Check your report regularly so you can see if there’s any incorrectly recorded information. 

Final Word

Equifax, Experian, and TransUnion all have the same end goal, they just operate a little differently. All come with credit reporting and monitoring tools, some for free, others at a price. With cyber crimes on the rise, each also offers identity theft and fraud features. 

When it comes to Experian vs. Equifax vs. TransUnion, there’s no clear winner. Each has features that appeal to different groups of people, but checking your score for free on each of them at least once a year is always a good idea.