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Why Are My Credit Scores Different from Equifax and Trans Union? Explained by Customer First Financing

Introduction: Many people are surprised to find that their credit scores from Equifax and Trans Union, the two main credit bureaus in Canada, can differ. At Customer First Financing, we understand that this can be confusing, and we’re here to help clarify why these discrepancies occur. In this blog post, we’ll explain the reasons behind the differences in credit scores from Equifax and Trans Union and how to interpret this information.

Different Scoring Models: Equifax and Trans Union each use their own proprietary credit scoring models to calculate credit scores. Although these models consider similar factors, such as payment history, credit utilization, and length of credit history, they may weigh these factors differently. This can result in different credit scores from each bureau.

Reporting Differences: Not all creditors and lenders report to both Equifax and Trans Union. Some may only report to one credit bureau, which means that your credit history may be more complete with one bureau than the other. This can lead to differences in your credit scores.

Timing of Updates: Credit bureaus receive updates from creditors at different times. It’s possible that one bureau has received more recent information than the other, which can impact your credit score. Over time, as both bureaus receive the updated information, the scores may become more similar.

Different Credit Report Information: Errors or discrepancies in your credit reports can also result in different credit scores. If one credit bureau has incorrect information on your credit report, it can affect the calculation of your credit score. It’s essential to review both your Equifax and Trans Union credit reports regularly and report any errors or discrepancies.

What to Do if Your Credit Scores Differ Significantly: If you notice a significant difference in your credit scores from Equifax and Trans Union, follow these steps:

Review Your Credit Reports: Obtain your credit reports from both Equifax and Trans Union and carefully review them for errors or discrepancies. If you find any, report them to the respective credit bureau.

Look for Inconsistencies: Check for any accounts or information that may be reported to one bureau but not the other. This can help explain the difference in your credit scores.

Monitor Your Credit: Regularly monitor your credit reports and scores from both credit bureaus. This can help you stay informed about your credit health and ensure that your credit history is accurate and up-to-date.

How Customer First Financing Can Help: At Customer First Financing, we understand that navigating the world of credit can be complex. Our experienced team can provide guidance on understanding and managing your credit scores, as well as offering flexible financing solutions tailored to your unique needs.

Differences in credit scores from Equifax and Trans Union can be attributed to various factors, including different scoring models, reporting differences, and timing of updates. By staying informed about your credit history and working with a supportive lender like Customer First Financing, you can make informed financial decisions and achieve your financial goals. Contact us today to learn more about our services and how we can help you navigate your credit journey.

May 19th, 2023