If you’re a Canadian trying to keep track of your credit score, you’ve probably heard of TransUnion and Equifax. These two companies are the primary credit reporting agencies in Canada, and they play a crucial role in determining your creditworthiness. But what’s the difference between TransUnion and Equifax, and how do you check your credit score with each of them? In this post, we’ll explore these questions and more, giving you the rundown on TransUnion vs. Equifax and helping you understand why your credit scores might be different.
Why Are My Credit Scores Different?
It’s not uncommon to find that your credit scores from TransUnion and Equifax are slightly different. Here’s why:
Different Credit Products
TransUnion and Equifax may have different information about the credit products you have, such as credit cards, loans, and mortgages. This can lead to slight differences in your credit scores.
Different Scoring Models
TransUnion and Equifax use different scoring models to calculate your credit scores. While these models are similar, they may weigh certain factors differently, resulting in slightly different scores.
Data Lag
Credit reporting agencies receive information from lenders and other sources on a regular basis, but it can take some time for this information to be reflected in your credit report. This can lead to differences in your credit scores if one agency has more up-to-date information than the other.
TransUnion History
TransUnion is one of the major credit reporting agencies in Canada, along with Equifax. The company was founded in 1968 as a credit bureau, and has since grown to become a global leader in credit reporting and risk management services.
TransUnion’s services are used by a wide range of organizations, including banks, credit card companies, and landlords, to help them make informed decisions about lending and risk. In addition to credit reports and scores, TransUnion offers a variety of products and services related to identity protection, credit monitoring, and fraud detection.
Equifax History
Equifax is another major credit reporting agency in Canada, with a long history dating back to 1899. Originally known as the Retail Credit Company of Atlanta, the company was founded to provide credit information to retailers. In the decades since, Equifax has expanded to become a global leader in credit reporting, with operations in 24 countries around the world.
Like TransUnion, Equifax provides credit reports and scores to a wide range of organizations, including banks, credit card companies, and landlords. In addition to credit-related products and services, Equifax also offers a variety of other risk management and information solutions, including identity protection and credit monitoring.
So, Why Are TransUnion And Equifax Important?
TransUnion and Equifax are credit reporting agencies that collect and maintain information about your credit history. This information is used to create your credit report, which is a detailed record of your credit history. Your credit report includes information about your credit accounts, such as credit cards, loans, and mortgages, as well as your payment history and any bankruptcies or collections.
Lenders, landlords, and other organizations use your credit report and credit score to assess your creditworthiness. A good credit score can help you secure loans and credit cards at more favorable terms, while a poor credit score may make it more difficult for you to get approved for credit.
How Do I Check My Credit Score With TransUnion And Equifax?
There are a few different ways to check your credit score with TransUnion and Equifax.
Free Credit Reports
Under Canadian law, you are entitled to a free copy of your credit report from each of the two credit reporting agencies once a year. To request your free credit report, visit the TransUnion or Equifax website and follow the instructions to request your report online. You can also request your report by mail or phone.
Paid Credit Scores
If you want to check your credit score more frequently than once a year, you can purchase a credit score from TransUnion or Equifax. Both companies offer a variety of credit score products, including single scores or packages that include your credit report and other credit-related information.
Credit Card Companies And Banks
Some credit card companies and banks offer free credit scores to their customers as a benefit. If you have a credit card or bank account with one of these companies, you may be able to check your credit score for free through their website or mobile app.
What Is The Difference Between TransUnion And Equifax?
TransUnion vs. Equifax are both credit reporting agencies and there are mostly similarities between the two. Here are the differences, though:
Coverage
TransUnion and Equifax cover different segments of the credit market. TransUnion focuses on consumer credit, while Equifax focuses on both consumer and business credit.
Credit Scoring Models
As mentioned earlier, TransUnion and Equifax use different credit scoring models to calculate your credit score. This means that even if the information in your credit report is the same, your credit score may be slightly different with each company.
Products And Services
TransUnion and Equifax offer a variety of products and services beyond just credit reports and scores. For example, TransUnion offers identity protection services, while Equifax offers credit monitoring and identity theft protection services.
Data Sources
TransUnion and Equifax collect information from different sources to create your credit report. This means that your credit report may have slightly different information with each company.
Which One Should You Choose As A Consumer?
It’s important to check your credit score and credit report with both TransUnion and Equifax to get a complete picture of your credit history. While there may be slight differences in your credit scores and credit reports, both companies can provide valuable information about your credit history and creditworthiness.
To ensure that you have the most accurate and up-to-date information, it’s a good idea to request a free copy of your credit report from each company once a year. This will allow you to check for errors and make sure that your credit report accurately reflects your credit history.
It’s also a good idea to consider the products and services offered by each company. If you’re looking for identity protection or credit monitoring services, you may want to choose the company that offers the features that best meet your needs.
In conclusion, TransUnion and Equifax are both important resources for Canadians looking to understand and improve their credit. By checking your credit score and credit report with both companies, you can get a complete picture of your credit history and take steps to improve your creditworthiness. Whether you’re looking to secure a loan, rent an apartment, or simply improve your financial well-being, understanding your credit is an important step towards achieving your goals.
Equifax vs. Transunion, Which One Is Better As A Landlord Or Employer?
At CleverBanker, we use Equifax.
As a landlord or employer, you may want to consider using any of TransUnion vs. Equifax to help you make informed decisions about potential tenants or employees. Both companies provide credit reports and scores that can help you assess an individual’s creditworthiness and financial stability.
Using credit checks can be a helpful tool in the decision-making process, but it’s important to remember that they are just one factor to consider. It’s also a good idea to take into account other factors, such as an applicant’s rental or employment history and references, to help you make a well-rounded decision.
In terms of which company to choose, it ultimately depends on your specific needs and preferences. Both TransUnion and Equifax are reputable credit reporting agencies with a long history of providing reliable credit information. If you’re not sure which one to choose, you may want to consider using both to get a complete picture of an applicant’s credit history.
It’s also worth noting that under Canadian law, you are required to obtain the consent of an individual before obtaining their credit report. This means that you must have an applicant’s written consent before requesting their credit report from TransUnion or Equifax.
In conclusion, both TransUnion and Equifax can be useful resources for landlords and employers looking to assess the creditworthiness of potential tenants or employees. By using credit reports and scores in conjunction with other factors, you can make informed decisions about who to rent to or hire.
