A good credit score can mean the difference between being granted credit to purchase the things you want and need — or being turned down as too much of a credit risk. It also helps a lender determine how much interest you’ll pay to borrow money or secure a loan.
The bottom line is the higher your credit score, the better your chances of accessing credit at better rates. At TransUnion, we want to help you monitor, manage and take steps to improve your credit score so you can take full advantage of lending opportunities.
Your credit report is a unique record of how you manage money — in other words, your financial behaviors, including past payment history, current credit use and inquiry history (how many times you’ve applied for credit). The report contains information from companies you do business with or which have granted you credit. We use this data to calculate your credit score.
Your credit score results from several factors in your credit report: your payment history, the amount you owe lenders, the length of your credit history (or tenure), the credit accounts you maintain, and any recent credit accounts you may have applied for.
Payment behavior is the most important aspect of your credit score because it shows how you’ve managed your payments. By paying your loan obligations regularly and promptly, you can improve your score. (35% influence)
Credit limit reflects the maximum amount you can use in any loan — it’s not a target. By keeping the total of all your loans and credit facilities below 35% of your limit, you can improve your credit score. (30% influence)
Credit history is important because it shows how long you've been managing your accounts. The longer you maintain a positive credit history, the better your score can be. (15% influence)
Types of credit accounts also contribute to your credit score. A mix of loans for property, vehicle, assets, consumer accounts and credit cards score higher. (10% influence)
Inquiries list the number and type and frequency of companies (e.g., bank, utility) that have requested your credit history. The fewer inquiries made, the higher your score. (10% influence)
Your TransUnion Credit Report does not contain information about your medical history, race, religion or national origin. As well as objective financial information, a credit report includes identifying information, such as name, address, date of birth, telephone or mobile number, government-issued identification number, and employment information.
If you have a dispute regarding your credit score, you can contact TransUnion via email and we’ll open an investigation with the analytics team to confirm your dispute. To dispute any aspect of your credit history information, contact the lender that provided the data.
Receiving a ‘New-to-Credit’ or NTC means you don’t have a history of credit transactions with a financial service, your financial service provider is not a TransUnion member, or they haven’t contributed data yet.
As an impartial third party, we simply collect data from creditors — such as banks, credit unions, utility companies and telephone companies — that report your payment history.
Our clients work hard to ensure they report accurate and current information which we secure in a credit database.
TransUnion provides credit reports on a strictly limited basis. Only TransUnion members (credit providers, such as banks, financing companies, utilities) are given access to credit information in a credit report, credit score and any additional value-added services.
When you submit a credit application and consent form, you allow lenders to view your credit report.
Because the information in your credit report — and the score you’ve achieved — are made up of impartial financial data, the credit reporting system enables credit providers to make efficient, objective and more accurate decisions about approving loans and credit.
When you apply for credit, such as a new credit card, the lender may request your credit report from TransUnion.
The lender uses your credit report (along with other relevant information like your income) to determine whether to grant you a credit card.
The lender will periodically report your payment activities to credit reporting agencies when you use the new credit card.
Credit reporting agencies update your credit report as they receive new information from lenders.
Your credit score changes based on several factors (payment behaviors, credit history, type, limit and inquiries).
We share the latest information with current and future lenders to help improve your credit history and make it easier to gain credit in the future.
The process is repeated each time you apply for credit.
Each lender has its own criteria and procedures for granting credit.
Our clients regularly provide us with updated credit information which we maintain in a credit database. This enables you, as a consumer, to show your credit provider you’re a person with sound financial health.
When making credit decisions, every lender has different standards for approving a credit application and the amount of credit to grant. The credit report is only one piece of information used by credit providers in their credit decisions.
TransUnion is not involved in the credit decision process. Our role is to provide credit information to help our clients make strategically sound decisions.
As a consumer, you benefit from objective decisions by credit providers and broaden your financial opportunities to engage in the modern economy. Credit reporting helps businesses reduce their risk and decrease chances of fraud. This helps keep credit costs low. A secure credit economy helps create jobs, facilitates a stable lending environment and drives economic growth.