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Does TransUnion Use FICO Score?

Many Americans use TransUnion for their credit reports because this agency aggregates information for over one billion consumers worldwide and is a trustworthy source. But does TransUnion use FICO score?

Does TransUnion use FICO score? TransUnion does not use the FICO score to determine your creditworthiness. TransUnion use the VantageScore, which is a scoring system developed by the three major credit bureaus (Equifax, Experian and TransUnion). The VantageScore is based on information in your credit report, and it’s designed to be a more accurate predictor of your ability to repay debt.

The same fundamental criteria still apply to your evaluation (payment history, credit mix, credit use, and account age,) but the categories are weighted slightly differently.

Does TransUnion Use FICO Score?

FICO scores are the most widely used among different lenders. Around 90% of lenders across the market use it instead of other scoring models. Some of the lenders, however, tend to use VantageScore. It’s created from the partnership of all three credit bureaus – Equifax, Experian, and TransUnion.

Checking FICO Score is standard practice when you want to mortgage land, apply for a typical home loan or perhaps mortgage a foreclosure. However, most recently, VantageScore has managed to get attention from lenders, so it has begun to be offered to clients for free.

In order to compete with the well-known FICO scores, credit bureaus Experian, TransUnion, and Equifax developed the algorithm that produces VantageScore in 2006. VantageScore’s most recent updates have a 300 to 850 scale, which is the same as FICO’s. Initially, VantageScore used a different scale than FICO.

What Influences the VantageScore?

There are several factors that influence the VantageScores. However, keep in mind that the most important factor is making payments regularly and on time. Here are the most influential factors:

  • As I’ve stated, payment history is the top most influential factor that will have a large impact on the VantageScore.
  • Credit utilization, meaning the percentage of different credit limits that are in use, and it also includes the types and age of the credit accounts.
  • Total debt and balances are considered moderately influential.
  • Recent debt and credit behavior are considered as least influential but are taken into account.

VantageScore also expresses its scoring system through percentages, just like FICO.

Transunion’s Credit Score Is Based on VantageScore® 3.0 Model

Even though TransUnion uses the VantageScore® 3.0 model, two different lenders may have quite different ideas about what constitutes a satisfactory TransUnion score. Additionally, as lenders may utilize a variety of information sources to assess an applicant’s creditworthiness, even applicants who have the precisely same TransUnion score may receive different treatment from the same lender.

The VantageScore Score Chart

There are no strict cutoffs, as well as no magic scores to be aspired to, but VantageScore does offer a sort of guidance. In the table below, you can see a general idea of how scores can stack up, but also keep in mind that it will depend on the lender, the type of loan, and the application itself.

Credit Score GradeVantageScore RangeVantageScore National RankingPrevious VantageScore
Previous National Ranking

Check the TransUnion Online Credit Score Simulator

Before you start looking for various information about home loans, such as whether mortgage points are closing costs or perhaps whether the mortgage points are tax deductible, it would be good to know where you stand. TransUnion offers an opportunity to avoid guessing your credit score – by providing an online Credit Score Simulator. It serves to aid you in your application process.

You won’t need to guess any credit score changes. This simulator will allow you to discover how certain potential future behaviors or events would affect your personal TransUnion credit score. So not only will you be aware of your current position as far as the credit scores go, but you could also see the potential path of changes.

TransUnion Also Provides Free Weekly Credit Reports

It’s always a good idea to keep an eye on your lines of credit. TransUnion offers consumers free weekly credit reports generated from all three credit bureaus. It is generated on the TransUnion website in just a few clicks. However, you can also get this credit report through their free TransUnion Service Center or the credit monitoring subscription which you pay for.

Lenders Decide the Usefulness of Credit Scores

Credit scores give lenders a quick way to check on a client’s creditworthiness and overall credit health. Once you decide to reverse a reverse mortgage or apply for a typical home loan, the lenders will evaluate your credit application and will use credit scores in the process.

In this case, a lender is free to use and combine whichever scores they see as best to help them decide.

A lender can also give weight to a score they see fit. This only means one thing – there is no “one size fits all.” A good TransUnion score used in the process will be the one that the lender sees as high enough. If the lender is convinced the applicant is viable, they will approve the loan.

Two people shaking hands

You Can Control Your Credit Behavior

It is true that you have no influence over the view lenders have on your TransUnion score or their final decision. But what is in your hands is the ability to control and influence your credit score. Responsible credit behavior is important, so you should make sure that you pay the monthly installments on time and regularly, stay within your limits (don’t borrow too much,) and be careful not to be in debt all the time.