While the method of calculating credit scores is kept secret, you can always improve your Transunion credit score range by understanding the factors that play a part in determining the actual score. That way, you have a better chance of improving your credit worthiness in the long run.
A secret formula is used to calculate a person’s credit worthiness and the final calculation equals one’s credit. This score gives banks information about each of their clients so they can assess how much of a risk they are. This formula does not use a prejudicial approach to calculating the risk, and in fact, factors like gender and ethnicity do not play any role in the calculation. Transunion is a leading company that provides banks and other financial companies with this information so they know how much of a risk they are taking every time they issue a loan.
Transunion uses data such as your credit report, credit card report, mortgage, car loan, your location and so on. If you have filed for bankruptcy in the past, then that information is also used to assess your risk quotient. When lenders make enquiries to credit bureaus, that information is also stored and will be displayed on your Transunion credit score. By logging in to annualcreditreport.com you can evaluate your credit report but credit scores are not displayed.
A credit report carries a lot of important information, which can be used to determine how much of a risk you are for the lenders. For instance, paying bills on time may affect up to 35% of the credit report while your debts also carry the same weight. All this information added up will give a fairly accurate picture of your risk value. Since the actual method used to get this credit score is secret, we cannot speculate on the details but all the major credit bureaus use FICO’s risk model.
Transunion uses FICO to determine the score and the range is 300—850. A high score reflects better risk value so it is in your best interest to keep the score as high as possible. On average, most people score from around 650 to 799. Because different bureaus use their own set of data to determine the score, a Transunion score may not be the same as Experian or Equifax but that is okay; the difference is minimal. In any case, your lender will usually check with all three bureaus to get an average score or what they call the ‘real’ score before they make a decision on your application.
To monitor your score, you can always order a snapshot from FICO that will show your scores from Transunion or any of the other major bureaus. It is possible for you to monitor your Transunion credit score range if you pay a monthly monitoring fee, which you can cancel anytime after the first month. By taking into account all the major factors contributing to your credit report, you can make adjustments to make sure the score comes out okay.