Why Your Equifax Credit Score Is Lower Than TransUnion

Last Updated: March 26, 2025

Disclaimer:We are not qualified legal or tax professionals and are not giving advice. Always speak with a qualified professional before making any legal or financial decisions.

Equifax, TransUnion, and Experian dominate credit reporting, yet their scores often differ, creating confusion. These discrepancies stem from variations in data collection and interpretation methods. Understanding your Equifax credit score and how it compares to others is crucial for effective financial management.

The differences in credit scores can significantly impact your financial outlook. Factors like incorrect information or naming errors on your Equifax credit report can lead to unexpected variations. Knowing why these disparities occur and how to improve your Equifax credit score is essential for maintaining your credit health and making informed financial decisions.

If you'd rather skip the article and speak to a debt specialist right away, we offer a FREE consultation.

Who Are the Credit Reporting Agencies? Understanding Where Your Credit Scores Come From

Understanding your Equifax credit score is crucial for your financial health. Many worry about poor scores, often questioning the worst or lowest possible credit scores. To maintain accuracy, it's essential to verify your credit information across all agencies: TransUnion, Equifax, Experian.

Creditors report your payment history to one or more credit bureaus. After six months of credit history, FICO or VantageScore models generate your Equifax credit score based on five factors: payment history (35%), credit utilization (30%), credit age (15%), credit mix, and application history.

Payment history significantly impacts your Equifax credit score, with late payments negatively affecting it. Credit utilization, the ratio of used credit to available credit, is the second most important factor. The age of your credit accounts also plays a role, with longer credit histories generally improving your score. Learn more about how to build credit when you have none.

Your Equifax credit score is influenced by your credit mix and application history, each accounting for 10% of the score. A diverse credit portfolio, including various types of loans, can positively impact your score. However, be cautious with credit applications, as "hard pulls" can temporarily lower your Equifax credit score, while "soft pulls" have no effect.

Who Are the Three Major Credit Bureaus?

There are three different major credit bureaus: TransUnion, Equifax, Experian. Each credit bureau collects financial data from creditors. The data is then scored by FICO or VantageScore.

While Equifax credit scores are widely used, specialized agencies like CoreLogic Credco offer additional financial data services. Your Equifax credit score can be accessed by authorized parties such as employers or lenders. Score differences between bureaus are common due to varying data collection and scoring models. If significant discrepancies arise, investigate the cause. For added security against fraud, consider options like a CoreLogic credit freeze, which restricts access to your credit report.