What is the most reliable credit reporting agency? (2024)

What is the most reliable credit reporting agency?

There is no definitive answer as to which of the three major credit bureaus — Equifax, Experian, or TransUnion — is the most accurate. The assessments of all three bureaus can vary due to differences in data sources and scoring models.

Experian, Equifax and TransUnion are all respected, credible bureaus that are used widely.

The top firms include Moody's Investor Services, Standard and Poor's (S&P), and Fitch Group. Moody's and S&P are located in the United States, and they dominate 80% of the international market.

AnnualCreditReport.com is the official site to get your free annual credit reports. This right is guaranteed by Federal law. You can verify this is the official site by visiting the CFPB's website. Don't be fooled by look-alike sites.

Mortgage lenders pull all three credit reports

According to Darrin English, a senior community development loan officer at Quontic Bank, mortgage lenders request your FICO scores from all three bureaus — Equifax, Transunion and Experian. But they only use one when making their final decision.

Neither your TransUnion or Equifax score is more or less accurate than the other. They're just calculated from slightly differing sources. Your Equifax credit score is likely lower due to reporting differences. Nonetheless, a “fair” score from TransUnion is typically “fair” across the board.

When you are applying for a mortgage to buy a home, lenders will typically look at all of your credit history reports from the three major credit bureaus – Experian, Equifax, and TransUnion. In most cases, mortgage lenders will look at your FICO score.

What are the three credit bureaus? Equifax, Experian and TransUnion are the three nationwide credit bureaus. According to the Consumer Financial Protection Bureau (CFPB), credit bureaus are companies that compile and sell credit reports.

The global credit rating industry is highly concentrated, with three leading agencies: Moody's, Standard & Poor's, and Fitch.

What are the top 3 credit rating companies in the world?

The Big Three credit rating agencies are S&P Global Ratings (S&P), Moody's, and Fitch Group. S&P and Moody's are based in the US, while Fitch is dual-headquartered in New York City and London, and is controlled by Hearst.

Your credit scores are calculated based on the information in your credit history. This means it's important to review your credit reports. You can view and request your credit reports weekly, at no cost to you, at www.AnnualCreditReport.com . Errors on your credit reports can reduce your scores unnecessarily.

Avoid Other Sites Offering Free Credit Reports

You might see companies and sites offering free credit reports, but there's only one authorized place to get the free annual credit reports you're entitled to by law: AnnualCreditReport.com.

Order online from annualcreditreport.com, the only authorized website for free credit reports, or call 1-877-322-8228. You will need to provide your name, address, social security number, and date of birth to verify your identity.

Federal Housing Administration (FHA) loans need at least a 580 FICO Score with at least a 3.5% down payment (which amounts to $10,500 on a $300,000 home). Conventional loans require a minimum FICO® Score of 620 along with a 3% down payment (which amounts to $9,000 on a $300,000 home).

Equifax and Experian are the most commonly used credit bureaus by auto lenders. They offer services that are directed specifically at the auto industry, and each gets a portion of their revenue from the industry.

As someone with a 650 credit score, you are firmly in the “fair” territory of credit. You can usually qualify for financial products like a mortgage or car loan, but you will likely pay higher interest rates than someone with a better credit score. The "good" credit range starts at 690.

And a lender may report updates to different bureaus at different times. So, it's possible that Equifax and TransUnion could have different credit information on your reports, which could lead to your TransUnion score differing from your Equifax score.

Credit scoring models can weigh certain information in your reports more heavily than other credit score factors. For example, one scoring model may put more emphasis on total credit usage than others. Because there are varied scoring models, you'll likely have different scores from different providers.

More banks and lenders use FICO to make credit decisions than any other scoring or reporting model.

What FICO score is used to buy a house?

The most commonly used FICO Score in the mortgage-lending industry is the FICO Score 5. According to FICO, the majority of lenders pull credit histories from all three major credit reporting agencies as they evaluate mortgage applications. Mortgage lenders may also use FICO Score 2 or FICO Score 4 in their decisions.

The minimum credit score needed for most mortgages is typically around 620. However, government-backed mortgages like Federal Housing Administration (FHA) loans typically have lower credit requirements than conventional fixed-rate loans and adjustable-rate mortgages (ARMs).

You'll usually need a credit score of at least 640 for the zero-down USDA loan program. VA loans with no money down usually require a minimum credit score of 580 to 620. Low-down-payment mortgages, including conforming loans and FHA loans, also require FICO scores of 580 to 620.

By law, you can get a free credit report each year from the three credit reporting agencies (CRAs). These agencies include Equifax, Experian, and TransUnion.

The credit bureaus collect slightly different data and use different scoring models, and since creditors are not required to report your data, each one may have slightly different information. If you have wildly different credit scores from the big three, take time to see why - they should be roughly the same.