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What Is A Bad Transunion Credit Score? So, what is a bad TransUnion Score, then? They like to say that TransUnion ( http://www.transunion.com/ ) uses what is called the Empirica Scoring Model. But that was changed in 2002; they now use what is called the FICO Risk Score, Classic (formerly the Empirica score). The NextGen FICO score is known as Pinnacle at Equifax, the Experian/Fair Isaac Advanced Risk Score at Experian and FICO Risk Score, NextGen at TransUnion. So, all three really use the FICO, underlying all their reports. So, an Empirica score is a credit score provided to lenders by TransUnion. Analysis. An Empirica score is the lender version of a credit score, which differs from that which a consumer may purchase. TransUnion provides a separate TransUnion score and a TransRisk score as consumer products. 
The Empirica score is a FICO credit score, whereas the consumer products marketed by TransUnion are not. TransUnion subscribes to the FICO risk scoring model and then tweak it to produce their own version.
Now, it is said that an Empirica score follows a range from 150 to 934. However, there’s almost no mention of this anywhere, any more. So, what is the ‘Classic FICO Risk Score’ that they are now using, then? See this website for more information: http://www.transunion.com/docs/business/clientSupport/legislativeUpdate/CreditScoreRpt.pdf And, more information can be gotten here: http://www.creditscoring.com/creditscore/fico/versions/ As you can see, TransUnion has what is called the FICO Risk Score, Classic (since 2002). So, all websites which state that TransUnion uses the Empirica Model are now wrong. Credit Score Highs and Lows If you compare the three major Credit Bureaus, you’ll see that they have three different scoring models, although they all arrive at their figures using the FICO values, then they tweak them. All do well at keeping it a secret exactly what equation they use to determine these numbers. Equifax Beacon 300-850 Experian FICO 340-820 And, the apparently outdated information on TransUnion Empirica 150-934 So, although most websites will say that Experian uses the FICO model, all really do (underlying their report). So, what is a good TransUnion score then? Nobody seems to know. You look on websites and they’ll say things such as “Range: 336-843 (Old information/ not verified)” That seems very strange to me that even the experts seem confused as to what the new range of FICO scores are, or even mean. And, many, many websites still list that TransUnion uses the Empirica Score Model and still say that it ranges from 150 to 934; the change happened in 2002. But, lets just say that the Classic FICO is close to being the regular FICO… The mean FICO score in the U.S. is 723. If you go to MyFico.com, which is the Consumer Internet site of Fair Isaac Corporation which developed the FICO Score… they will tell you that the “FICO score from Equifax, Experian and/or TransUnion” is a range of 300-850. Well, if you take into account those who are Mortgage Lenders, they’ll say that a FICO score from Equifax, Experian or Trans Union is 300-850. This might mean that they get their scores from MyFico. Confused yet? Anyways, if you consider a typical FICO score: Scores under 500 are a Bad score. Scores 500-600 Poor score. This usually is from slow pays on loans, charge offs, student loans and medical bills. You will most likely be charged the highest interest rate allowed by law in your state, or turned down completely. You'll be considered "special finance. Scores 600-650 Fair score. You will be able to obtain credit more easily than the weak credit category. Scores 650-700 Good score. As long as your debt to income ratio is low you will be approved, but will likely pay a higher interest rate on your loan. Scores 700+ Great score. You are considered a "prime borrower" and will have no problem getting a great interest rate on your home loan, car loan, or credit card. But, once you’ve gotten a bad credit score, don’t panic. There’s no good way to increase your credit score overnight. If you’re Transunion Credit Score isn’t very good, don’t: Close unused credit cards as a short-term strategy to raise your score. Open a number of new credit cards that you do not need, just to increase your available credit. This approach could backfire and actually lower your score. If you have been managing credit for a short time, do not open a lot of new accounts too rapidly. New accounts will lower your score more if you do not have a lot of other credit information as rapid account build-up can look risky if you are a new credit user. Do your rate shopping for a given loan before you submit an application and the lender searches your credit report. More than a few searches in a short space of time can hurt your credit score. Remember that you can dispute things that are in your credit report. Visit their website at http://www.transunion.com and research on things you might do to help better your credit score. What is the phone number, fax number or address for TransUnion? Answer: Use the mail, if you’re trying to contact TransUnion, because calling a bureaus’ computerized phone system is more frustrating and less secure than certified priority mail would be, as recommended by the FTC. Is there a Fax number for Transunion? No, there is not one; this would be like faxing something to Microsoft or Congress. Always use certified mail. Remember that there are three credit reporting bureau’s (Experian, TransUnion and Equifax) that have your credit reports, payment history, personal data and credit scores, not just one. All three bureaus are likely to have different data so you should make sure that you have information from all three of your credit reports and credit scores online, not just TransUnion. If I have a dispute but don’t have an address or phone number for a creditor that reported on your bureau then, print the official and legal dispute form. Instructions are generally on form A recent study found that twenty-five percent of credit reports at TransUnion had errors that were serious enough to cause people to be turned down or denied credit for credit cards, home loans, mortgages, car loans, personal loans, rental apartments, or even a job or jobs; so make sure you find out what information is in there. Information on how you would contact the Registered Agent of TransUnion: Before you resort to mailing to the RA, please exhaust the normal dispute channels and document in your correspondence what efforts you have made, up to this point, to get resolution through the normal processes. In any case, where there is a c/o company listed, your letter should be directed to the CRA NOT the Registered Agent. These are separate companies whose business is assisting other companies to incorporate and act as Registered Agents for them. These companies do not produce the credit reports, nor do they have any authority or ability to effect your credit report in any way. TransUnion: TransUnion LLC. c/o The Prentice-Hall Corporation 2711 Centerville Rd. Ste. 400 Wilmington DE 19808 Get Your 3 Free Credit Scores For $0 |
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