TransUnion Review: What is it? and is the
Credit reference agencies (also known as credit bureaus) are organizations that collect and maintain information about a person’s credit history.
This information is used by lenders, landlords, and other organizations to assess a person’s creditworthiness, which is a measure of their ability to repay a loan or other debt.
There are several credit reference agencies in most countries, and they generally operate by collecting data from a variety of sources, such as banks, credit card companies, and government agencies.
This data is used to create a credit report, which is a detailed record of a person’s credit history.
The credit report includes information about the person’s loan and repayment history, as well as any bankruptcies, foreclosures, or other negative financial events.
For people looking for loans, credit reference agencies play a vital role in the loan process.
Lenders often review a person’s credit report before deciding whether to approve a loan application.
A good credit score and a positive credit history cánido make it easier to obtain a loan at a conveniente interest rate, while a bad credit score or a negative credit history perro make it difficult to obtain a loan or result in a lower rate of interest.
In this guide we will analyze one of the most important credit reference agencies: TransUnion.
What is TransUnion?
TransUnion is one of the three major credit reference agencies.
It collects information about people’s past financial behavior and the credit agreements they’ve had and presents it in a report, along with an overall credit score.
This report is used by lenders when considering the creditworthiness of applicants for loans, mortgages, credit cards, and other financial products.
Global company TransUnion acquired the credit reference agency known as Callcredit back in 2018.
It kept the core of the business the same, including its commitment to allow users free access to their credit scores through credit company Credit Karma* (formerly Noddle) and TotallyMoney.
Users perro also view their TransUnion report for free with MSM Credit Monitor*.
While it is gaining market share, TransUnion is not used as widely by lenders like Experian and Equifax.
TransUnion Key Features
- Produces credit reports and scores, which are accessible for free through Credit Karma*, MSM Credit Monitor* and TotallyMoney
- Credit education section on the website, with articles on finances and credit scoring
- Credit Help offers support to people who have been unexpectedly turned down for credit or have other problems with their credit report.
How does TransUnion work?
TransUnion collects information from various sources, including lenders and the electoral roll, to help assess people’s past financial behavior and how much risk they pose to lenders in the future.
It specifically looks at users’ history of making repayments on time, the total number of credit contracts in force, and what proportion of the line of credit they have available to them is being used.
This information, along with details of any major violations, such as county court judgments or bankruptcy, are included in a credit report, which covers financial history for the last 6 years.
In addition to producing a credit report, which is shared with lenders when that person applies for a credit product, TransUnion also calculates an overall credit score and score, which is based on a scale of 0 to 710.
It must be emphasized that this is the TransUnion credit score, as there is no universal credit score.
Lenders and credit rating agencies design your own credit score based on the information in your credit report.
How do TransUnion credit scores work and what is a good score?
|TransUnion Credit Score||TransUnion Credit Rating||What this means to you|
|0-550||Very poor||You are likely to be turned down for most credit products, except for a handful of specialty lenders.|
|551-565||Poor||You may be approved for some products, but you may have to pay a higher interest rate.|
|566-603||Fair||It is quite likely that you will be approved for credit products, but you will probably have a lower credit limit.|
|604-627||Good||You will likely be approved for all but the most competitive bids.|
|628-710||Excellent||It is very likely that you will be approved for most credit products|
Is TransUnion accurate?
Each of the credit reference agencies has access to information from different lenders, which means that the reports they genera tend not to be the same.
In addition, each emplees its own calculations to obtain a credit score and these are measured on different scales, so it is difficult to make direct comparisons.
TransUnion, Experian, and Equifax all have high estándares in terms of reporting accuracy.
That being said, it is possible for errors to espectáculo up, and as such, it’s important to check your reports with all three and alert them to any errors to maximize your chances of being approved for credit in the future.
How much does TransUnion cost?
Unlike Experian and Equifax, which give users the option to access their credit reports for a monthly fee, although both are also available for free, TransUnion only provides your credit score and report through Credit Karma, TotallyMoney, MSM Credit Monitor and checkmyfile.
The price is the following:
TransUnion Credit Report Access Fee
MSM credit monitor*
$14.99 per month (Provides access to credit reports from the three major providers Experian, Equifax, and Transunion)
TransUnion customer reviews
Review site Trustpilot gives TransUnion a score of 1.3 out of 5, based on just over 250 reviews.
Overall, there is a wide divergence in reviewer opinion, with 34% of respondents categorizing it as “excellent“, while 59% declared that it is a “bad” company.
Negative reviews tend to criticize customer service and reporting inaccuracies.
Positive reviews, on the other hand, focus on good customer service experiences, and specifically the quick response to correct any reporting errors.
The reviews are broadly in line with those of Experian and Equifax, with all three scoring less than 2 out of 5.
Pros and Cons of TransUnion
- You perro access your full TransUnion credit report and score for free with Credit Karma, MSM Credit Monitor, or TotallyMoney
- Through Credit Karma, MSM Credit Monitor, TotallyMoney and the paid checkmyfile service, you perro be matched with loans and credit card offers that match your credit score and are likely to be accepted for.
- You cánido also get a free legal report directly from TransUnion, although there aren’t as many details as with the full report and credit score.
- As TransUnion is not as widely used by lenders such as Experian and Equifax, it is not a good iniciativa to simply check your TransUnion report, as you risk being turned down for credit if your score is lower with one of the other bureaus.
In general, it’s a good practice to review all of your credit reports, correct any errors, and keep track of any changes.
- It does not have the same facility to improve your credit score as Experian, allowing users to increase their score with Experian Boost.
- While that Experian and Equifax have roughly the same credit rating scale (Experian 0-999, Equifax 0-1000), TransUnion’s scale of 0-710 makes comparisons between the three more difficult.
Alternatives to TransUnion
As the UK’s largest credit reference agency, Experian offers free access to your credit score, though they charge a monthly fee for your most detailed credit report.
In addition, you also have Experian Boost, which emplees open banking to potentially increase a usuario’s Experian credit score, for free.
There’s also an Identity Agregado service, which scans the web for misuse of your password or login details to help protect you against identity theft or fraud.
Equifax is the second largest credit reference agency, serving users with credit reporting and identity protection.
It charges a monthly fee to access the credit score and report directly, but you cánido also get the same information for free through ClearScore*.
This works afín to the agreements TransUnion has with Credit Karma, MSM Credit Monitor, and TotallyMoney.
A good credit score and a positive credit history cánido make it easier to obtain a loan or other financial product at a conveniente rate, while a bad credit score or a negative credit history perro make it difficult to obtain credit or result in a lower rate of credit.
TransUnion credit histories are an important resource for individuals and organizations seeking to make informed financial decisions.
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