Equifax VS Transunion. Whats the Difference?

A friend of mine has written on her blog about the difference between Equifax and Transunion. The question came up…Are they both the same. Let me do by best to break it down, from my knowledge. Equifax and Transunion are the 2 credit reporting agencies in Canada, used by lenders. From my experience Equifax is the most common to be used by lenders, when looking to grant credit. When a person is trying to get approved for a mortgage the average of both will usually be used. When trying to apply for  car loans or bad credit car loans most lenders will use Equifax. This being said, their will always be exceptions to this. I have found in my experience that most clients that were from Eastern Canada have a more up to date Transunion and would contain more information, and clients from Western Canada have a more up to date Equifax. This could be coincidence as well. What I do know is credit granting companies have the option to who they wish to report to as a primary. When lenders choose who they want to report to as a primary, they will take a lot of items into consideration like cost to report, amount of clients they are reporting on(monthly), most common bureau, and effectiveness of the reporting. As a lender reporting, we know that Transunion requires fewer reported files on a monthly basis. What does this information mean to a client, probably very little. I, myself, use Transunion, when I notice a client is from the Eastern side of Canada, as I believe it will give me more accurate information. As a client you should be made aware that your 2 bureaus will not be the same. From what I have found with my own bureau, and clients bureaus, almost 0 percent have been the same. I believe that a person should know where both of their bureaus are at all times. This will allow a client to know that they have not been reported incorrectly on either bureau( in regards to identity theft). It is very common for 1 bureau to have a trade line reporting, and the other bureau not showing that exact trade line. I have also found that if a trade line has been cancelled by consumer or credit granter, that trade line might show on 1 bureau and not the other. Both Bureaus have a completely different format and different reporting codes. Please keep in mind that both bureau use a different reporting formula. I will get more into this on another post. To put this in a nutshell, I have found that most lenders will rely on Equifax as the CRA(Credit Reporting Agency) when looking to grant credit. One more thing, its not just the score that lenders take into consideration, its the overall information contained.

I hope I was able to clear up some questions.

Just my 2 Cents




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About mark

I am just a guy in my mid thirties, who just enjoys analyzing credit. My goal is to share information about credit, to anyone that will listen. I started studying credit in approx 2004. I used my own personal situation to help better myself with credit and finances. I spent thousands of countless hours studying my own credit bureau and even more hours studying online material to put myself in a better spot with credit. I started my credit venture with a very undesirable credit score, and had the dream and vision to turn it around as fast as I possibly could. Through hard work, diligence, and time it was looking more hopeful in 2005. With alittle more work it was getting better in 2006. In 2007 I purchased a home and my dream was starting to take shape. Today, as I write this, my credit is completely turned around and I am in a much better spot. Everyday, I can be working dilegently to tweak little things to do with my credit, but I am a much better person today then I was in 2004. This is alittle of my story. I am not ashamed of my story, nor should I think that anyone should be ashamed of theirs. One thing is factual, we all (over 18) have a credit bureau. What we do with our credit is completely within our control. This is a vision about what we can do to move forward, and not dwell in the past. I am a human being with a beating heart like the rest of the world, and if I can spend some time offering my personal opinion on credit, to even one person, then I have succeeded. The articles and opinions posted on this blog are my opinion and should not be considered professional financial advice.