TransUnion vs Equifax: Difference Between Canadian Credit Bureaus

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Equifax and TransUnion are two consumer credit bureaus in Canada. They are private companies that collect and track borrower credit information from lenders and public sources, and they provide this data to lenders to assess a borrower's creditworthiness. They provide a credit score, as well as detailed credit history information, for all loan accounts, including payments and lender inquiries.

The two credit bureaus are very similar in their functions, but their algorithms may differ, and lenders may not report to both of them. As a result, they may have incomplete information on file, which can lead to discrepancies in their records. They may show different credit scores to customers, but they generate accurate and standardized VantageScore and various types of FICO scores for lenders. Equifax offers its proprietary credit score to customers, while TransUnion reports a standardized VantageScore.

Although an Equifax score is helpful and relevant, it may not be the same as what lenders see. On the other hand, VantageScore, provided by TransUnion, is a more standardized score that lenders may use for loan decisions. The following factors are used to calculate VantageScore 3.0

Factors and Their Weights Credit Bureaus Use To Calculate VantageScore 3.0

Although TransUnion and Equifax are very similar, they often have discrepancies. The main reasons for differences are that they use different algorithms, may not have complete information, and may report on different time periods.

TransUnion vs Equifax Comparison

• Lack of Data Sharing: The most significant and notable difference between the two credit reports arises from them not sharing information with each other. For example, KOHO Credit Building reports to Equifax, which may make it problematic to access this information on TransUnion. Lenders may choose to consider the lower of the two scores, so if one credit bureau does not have complete credit information, it may affect the chances or terms of the loan. If you see a significantly lower score on one credit report but not the other, it is likely due to missing information. To improve your score, you should contact the credit bureau with the missing information and discuss how to report it.
• Different Credit Scoring Models: For consumers, Equifax and TransUnion provide a single credit score, while lenders have the option to choose a credit score type that best suits their purposes. Equifax provides its own credit score, while TransUnion provides Vantage 3.0.
• Different Reporting Periods: TransUnion and Equifax may have different reporting periods. Even though their reporting periods may differ by just a few weeks at most, certain payments may not be captured, resulting in short-term discrepancies.

Both TransUnion and Equifax offer websites where you can request your credit report. Consumer credit reports are free and are updated monthly. Most Canadian banks offer a free credit report check from TransUnion or Equifax in their banking app. There are also third-party apps, such as Credit Karma and Borrowell, that allow you to view and analyze your credit score from TransUnion and Equifax.

There are also other ways to request your credit report. Equifax offers a credit report to be sent by mail. TransUnion offers a variety of delivery methods, including mail, phone, and in-person options.

Both TransUnion and Equifax may have incomplete information, so it is worth checking both. None of them is necessarily more accurate than the other, but both should have complete information on file to be accurate enough. The credit score a customer sees is not the credit score lenders receive when conducting a credit report inquiry. Even though TransUnion and Equifax scores may differ, the scores they provide to the lenders use the same algorithms and must match as long as they both have complete information on file.

Lenders do not have a preference over a consumer credit bureau, but they are partnered with one of them. This means that, depending on the lender, they may obtain the information from TransUnion or Equifax. Some lenders may also report loan information to one credit bureau, which may lead to discrepancies between the two. To avoid this discrepancy, you may have to contact the credit bureau that has the missing information to find out how to report the information.