TransUnion credit scores vary from 300 to 850, with a greater number showing improved credit standing. A TransUnion credit score of 720 or higher is regarded as “good”. However, lenders may have varying requirements and may view a score of 750 or higher as having good credit. In the end, the loan company you are dealing with may have different standards for what constitutes a decent TransUnion credit score. That is why it is difficult to define what a “good” credit score is. However, as a rule of thumb, it is usually taken as anything above 720.
Why does TransUnion score fluctuate?
It is normal for TransUnion scores to fluctuate. There is no need to worry about regular fluctuations and oftentimes, there are many reasons behind that.
Payment history: Your credit score is heavily influenced by your payment history. Your credit score will rise if you settle your bills on time. On the other hand, if you make late or missed payments, your score may drop.
Changes in your credit report: Changes to your credit report can also impact your credit score. Your credit report frequently depends on how you are maintaining your credit score and any slight changes will impact your credit score.
New credit: When you take out new credit, there is usually a hard inquiry on your credit report rather than a soft inquiry. This often results in a lowered credit score.
Age of credit: Lastly, how long you are using your credit, that is, the time period, can also impact your credit score. If you just started building credit, your credit score gets impacted more easily whereas, if you have a longer credit, it is usually not the case.
Your credit utilization can also impact your credit score, so keep that in mind as well.
Does a TransUnion credit score matter?
Yes, TransUnion credit score matters as it is one of the most commonly used credit scores by lenders and creditors. It offers an evaluation of your financial trustworthiness and aids creditors in making smarter decisions regarding whether you are a legitimate borrower or not and it gives them the certainty that you will complete their loan. Your TransUnion credit score can affect the interest rates and conditions you may be given, as well as your potential to get credit approval. When compared to those with lesser credit scores, those with higher credit scores may enjoy reduced interest rates and better conditions. However, it’s also important to note that credit score is not used only for loans. Oftentimes, employers, landlords, as well as insurance firms, may also use credit ratings to determine a person’s financial accountability and dependability. Therefore, it’s crucial to keep a high TransUnion credit score to improve your odds of getting credit approved, getting excellent terms, and possibly even saving money in the long run.
What is a good range for TransUnion credit score?
A “good” range for TransUnion credit score is 721-780. TransUnion uses VantageScore 3.0 scoring model to calculate the credit score range. According to that, anything between 300-600 is considered very poor, anything between 601-660 is considered poor, the range 661-720 is considered fair, the range 721-780 is considered good and ultimately anything between 781-850 is considered excellent credit. It’s crucial to remember that based on the particular lender you are dealing with, the definition of a “good” TransUnion credit score and credit score calculations may change. Some lenders might define “good credit” as having a number of 700 or greater, while others might have higher or lower standards.
Is TransUnion always the lowest score?
No, TransUnion credit scores are not always the lowest score. However, as users report, it is often lower than most other credit scores they have. Depending on the credit bureau and the scoring algorithm, your credit scores may change. Your credit record may contain slightly different information from each credit reporting agency, which could lead to a variety of credit scores. It’s also crucial to remember that various scoring algorithms are employed when determining credit ratings. For instance, major credit bureaus frequently use the FICO score and VantageScore credit assessment models. However, users have often reported that their TransUnion score is usually lower than other credit scores. That is because the TransUnion credit scoring model is usually stricter than other ones. They take into consideration many credit factors such as your personal information, employment history, credit history, credit limits, financial story, and so on, which further makes it lower. Furthermore, TransUnion credit score is typically not friendly to beginners, that is individuals who just started building credit.
What makes TransUnion score go down?
TransUnion score does not go down because of just one reason and there could be multiple reasons behind it. It could be because you have missed your payments and are making late payments frequently. It could be because of new credit applications or high credit card utilization as well. Unfortunately, bankruptcy can be another major reason behind your TransUnion credit score going down. Lastly, there could also be errors on your annual credit report, which can affect your score. Hence, conduct credit monitoring and look out for these reasons and maintain your credit score and financial health as much as you can. If you have a healthy credit history, it is easier to get loans like home loans or auto loans. Make your payments on time and get into a healthy credit habit by checking your weekly credit report.
For more information on your TransUnion credit score contact the Cain Mortgage Team today.