About TransUnion Credit Scores

Obtaining your TransUnion credit score can be a tricky business. First, you have to pay for the credit score, then you have to figure out what your number means, and then you have to compare it to your scores from other credit bureaus. Then there's the question: How exactly is a credit score determined? While the exact nature of credit scoring is shrouded in mystery by the credit bureaus, by understanding your credit report you can basically determine what factors are affecting your credit score.

Function

A credit score provides banks and credit companies with a comparatively fair way of judging your credit-worthiness; the numerical formula used isn't prejudiced about your ethnicity or gender. TransUnion is one of three credit scoring bureaus that provide credit scores (the other two are Experian and Equifax). The Fair Isaac Corporation (FICO) also provides credit scores; this is the most commonly used credit score.

Basis

A TransUnion credit score uses data from your TransUnion credit report to calculate how much of a risk you are to potential lenders. Your TransUnion credit report contains information about your current accounts, such as credit cards, mortgages or car loans, as well as records of any bankruptcies or tax liens. A TransUnion credit report also has records of any inquires that potential lenders have made to credit bureaus in the past. You can access your TransUnion credit report for free at AnnualCreditReport.com, but you won't be able to see your credit score.

Models

How is a TransUnion credit score calculated from a credit report? TransUnion gives each aspect of your credit report a certain amount of importance---for example, paying on time may be worth 35 percent of your credit score, your total debt may be worth 30 percent of your credit score and so on. (The actual models used to calculate credit scores are carefully guarded secrets.) TransUnion uses several models to calculate its credit scores; however, all these models are based off the Fair Isaac Risk Model created by FICO. TransUnion, along with Equifax and Experian, also offers the VantageScore credit report. VantageScore is not associated with FICO and is not as commonly used by potential lenders as FICO credit scores.

Scores

Your TransUnion FICO-based credit score will range from 300 to 850---the higher the number, the better your score. Most people will have credit scores between 650 and 799. If you're comparing your TransUnion credit score to Equifax and Experian credit scores, and the numbers vary, don't worry too much. Each credit bureau has a slightly different set of data to work with. Lenders will usually check all three credit scores and use a median number as your "real" credit score. VantageScore uses a different system: Numbers range from 501 to 900 and you will also get a letter grade ranging from A to F.

Purchasing

If you want to monitor your TransUnion credit score, TransUnion offers a monthly monitoring service. (See "Additional Resources," below.) You can cancel within the first 30 days; after that, there is a monthly fee. This service does not include credit scores from Equifax or Experian. It also doesn't offer your FICO score (the score offered is based on a TransUnion model). If you'd like to find out your scores from all three credit bureaus, you can order a snapshot of your scores through FICO. (See "Additional Resources," below.)