Equifax vs. TransUnion: Why are They Different?

In Canada, there are two credit bureaus: Equifax and TransUnion. If you’ve been checking your credit score at least once a month (as you should to stay on top of your financial health), you may notice that the score you get from each bureau is significantly different. Credit scores can very between TransUnion and Equifax because each of these credit bureaus uses its own proprietary credit scoring model to calculate credit scores based on a variety of factors.

To ensure your credit profile stays healthy, it’s crucial to understand what factors influence credit scores and why yours may differ between the two credit bureaus.

Why Are My TransUnion and Equifax Scores Different?

What’s the difference between TransUnion and Equifax credit scores? Why are you seeing slightly different numbers?

There are generally three main reasons:

Reason #1: Different Credit Scoring Models

Credit reporting agencies like TransUnion and Equifax both do the same thing, which is to maintain credit reports and calculate credit scores based on the financial data they receive from banks and creditors. What they do with that data is slightly different, because they each have their own proprietary credit scoring models and algorithms. This explains why you can have an excellent credit score with one agency and only a good score with the other, for example.

Equifax uses a risk prediction tool called Equifax Risk Score 3.0, while TransUnion uses what they call their CreditVision risk scoring model. While both metrics rate credit scores in Canada between a range of 300 to 900 — with 900 being the highest possible score — each credit scoring agency gets different numbers because they weigh various factors differently.

Although the two credit bureaus may give credit information slightly different weight, the factors Equifax and TransUnion measure are much the same. These factors, listed from highest to lowest impact, are:

• Your payment history

• Your credit utilization (how much credit you’re using as a proportion of your available credit)

• Your credit history

• Your credit mix

• Inquiries into your credit file

Note that payment history, credit utilization and credit history are generally the factors that count the most when it comes to your score and overall credit health.

Other factors that also influence credit scores are things like public records (such as bankruptcies and consumer proposals). Information including where you live, your marital status, your employment record and yearly income are not the types of information that credit bureaus use to calculate credit scores.

Reason #2: If and How Lenders Report Credit

There are really no firm rules as to how lenders and credit card providers must report credit information to credit bureaus. This means your lender can choose not to report your account to credit bureaus at all. Some creditors may only report your credit account to one of Canada’s two credit bureaus, which can also explain the different credit scores you see when you check your Equifax vs. TransUnion rating.

Reason #3: When Lenders Report

There's no strict timeline on when creditors must report financial data to credit bureaus. Smaller lenders without big accounting and payment departments may take a while to get their balance sheets up to date. As a result, they may get behind in reporting late or missed payments to credit bureaus.

When comparing your Equifax and TransUnion credit scores, it’s vital to make sure you’re comparing similar dates. Your credit score and credit report are essentially snapshots in time of your credit health, so you’ll want to compare similar dates when looking for differences between the two credit bureaus.

Equifax vs. TransUnion: Which Score Matters More?

Neither score matters more. It's up to your potential lender to determine what credit bureau they want to consult when they look up your score and credit profile. It’s even possible that a creditor may get your file and score from both credit bureaus.

A good approach is to not worry about small differences between the individual credit bureaus. If there’s a major difference between TransUnion and Equifax, you should contact the bureau.  Instead, focus on keeping your score strong and reviewing your credit score and report at least once a month to catch any errors that may require updating.    

Why is My Equifax Score Higher Than My TransUnion Score?

You might find that your Equifax credit score is sometimes lower or higher than your TransUnion score for a variety of reasons, including:

• Each of Canada’s two major credit bureaus use different credit scoring models to establish your credit score and file. While they consider many (if not all) of the same factors when calculating your score, such as payment history, credit utilization, credit history, credit mix and credit inquiries, the weight they give to each may be slightly different.

• Your creditor only reports your credit account to one of the credit bureaus rather than both. Consider contacting your lender to ask what bureau they report to. One of your credit reports might contain an error or inaccuracy. Reach out to the credit bureau in question to update or dispute any errors.

• Timing can also be the cause. One credit bureau may have updated your score and report sooner than the other credit bureau.

Do Banks Prefer Equifax vs. TransUnion?

It's often unclear which credit bureau a bank or other lending institution relies on to get your credit information and score. You can always reach out to your bank or creditor and ask what credit bureau they use or whether or not they get credit reports from both bureaus. Be aware that they aren’t obligated to tell you, however.

How Can I Check My Credit Score for Free?

One of the easiest ways to get your credit score and credit report for free is with Borrowell. When you sign up online through Borrowell's website, you can get your Equifax credit score and credit report at no cost.

Signing up takes less than three minutes, and it won’t impact your credit score. Once you sign up, you can check your credit score or download your credit report at any time. You’ll also get weekly updates on how your score has changed, as well as personalized tips on how to improve your score. You’ll even get suggestions on financial products that match your profile.

You can also get your credit report by contacting the credit bureau directly. Note that both Equifax and TransUnion offer credit monitoring services for a fee. However, you do not need to pay for any credit products to be able to access your credit report at no cost.

Equifax

Equifax will provide you with both your entire credit report as well as your score for free.

Depending on what option you use, it can take anywhere from a few minutes to up to 20 business days to receive your report. You can get your score and credit file in one of four ways:

• Online: Submitting a request online is the fastest way to access your credit report. Simply create a myEquifax account, sign in and download a PDF copy of your credit report. Your report is updated monthly and you can print a copy of the PDF.

• Phone: You can submit your request by phone free of charge at 1-800-465-7166. Note that if you submit your request by phone, you’ll have to provide your Social Insurance Number (SIN). If you don’t want to share your SIN, you’ll have to choose another option.

• Mail: You'll need to download and fill out an official Canadian Credit Report Request Form from the website. You’ll then need to send in a photocopy (front and back) of two pieces of valid Canadian government-issued identification (ID), at least one of which must have your current home address. It can take 10 to 20 days to receive your report, after you’ve mailed your form to Equifax. 

• In-person: Equifax has three office locations that you can visit in person to ask for your free credit report. To do so, you’ll need to bring at least two forms of official identification, including one photo identification and proof of current address. You’ll have to provide original copies of your chosen identification documents, because photocopies are not accepted at the office locations.

TransUnion

Unfortunately, TransUnion only provides free credit scores to residents of Quebec. They will, however, provide you with a free copy of your credit report (though TransUnion refers to the document as a Consumer Disclosure). As with Equifax, to get your TransUnion Consumer Disclosure you have four options:

• Online: Sign up online for your Consumer Disclosure on the TransUnion website.

• Phone: Call 1-800-663-9980.

• Mail: Print and fill out the Consumer Request Form and mail it in along with photocopies of two pieces of official identification.

• In-Person: Visit a TransUnion office and be sure to bring along two pieces of identification.

Another way to get a free copy of your score and/or credit report is via your bank. Some banks, like RBC, Scotiabank and CIBC allow you to download a free copy of your report and/or score via their website or app as long as you’re a client.

The Bottom Line

There are a variety of reasons you may see different credit scores on your TransUnion and Equifax credit reports. One of the main reasons is that they use different scoring models. This is normally not a serious issue unless there is a big difference between your TransUnion score and your Equifax score, in which case you should check your credit reports and contact the respective credit agencies to see if there’s an issue with your credit file.