If you are a concerned a little bit (or a lot!) about your credit rating, you’ve probably already heard the names “Equifax” and “TransUnion”. However, you may not fully understand what they mean!
Today, we’ll help you better understand what these two credit bureaus do and how they set oneself apart.
Same Principle
In both cases, the purpose of a credit bureau is to establish whether you have good payment habits. All the information set forth form your credit report. Basically, the bureaus draw on the following criteria:
- Late or regular payments
- Debt ratio (balance to limit)
- Experience and history
- Applications made
This allows them to establish a rating, which is a score between 300 and 900.
Small Differences
The first difference lies in the algorithm. Although they use the same data, TransUnion, for example, gives more importance to work history. Moreover, the history used is 7 years, while it is 6 years and 9 months with Equifax.
It is also possible that small pieces of information appear for one, but not for the other. It depends on which bank you are dealing with! Here are some examples of banks and the bureau they deal with:
| Equifax | TransUnion |
| TD Bank | RBC |
| Scotiabank | BMO |
| CIBC | National Bank |
| Desjardins | Laurentian Bank |
If your rating is not exactly the same, that’s normal! In general, the difference between the two will be minimal. Besides, what is a good credit rating? We find all kinds of answers to this question.
According to Equifax, a score is very good at 725 and excellent starting at 760. Your rating is not satisfactory? L’Ami Auto Crédit in Chicoutimi, La Malbaie, Baie-Comeau, Alma and Sept-Îles can help you improve your report.
