TransUnion vs Equifax?

[amandak1026]

Hello.  I'm new to this forum, so if this question has been covered already, please forgive me.   My husband and I have had credit issues to do a 3-year-long layoff he went through a couple years back. He's now back to steady work and we're paying our bills on time and paying off some collections, but our credit is still not great.  We're unexepectedly expecting a 3rd child in April and are going to need a larger vehicle, so in order to start planning/preparing for that purchase I pulled my FICO scores for both TransUnion and Equifax today.  Imagine my suprise that there's an almost-100-point difference in the two.  Can anyone help me understand this?  Equifax is 496 (I almost cried when I saw this. How embarrassing. I do have one credit card that I use a bit every month and then pay off, and they actually just increased my credit limit without me even asking, so I was hoping that was a GOOD sign for my credit. Apparently I was wrong?)  And TransUnion is 584.  I don't understand the discrepancy.   I don't want to go into a car dealership in 3 months completely unprepared, obviously. 

[Revelate]

Welcome to the forum AmandaK!

There's two possibilities: the information on your two reports may be different which given the disparity is what I suspect is going on honestly.  I'd recommend going through both and comparing each of the individual items.  The other one which it likely isn't but bears pointing out: the Equifax and Transunion scores here are different versions which can account for a swing too though I find that as unlikely in your case, but in my case in my signature there's a 30-40 point swing between my EQ score and my others which are different versions, which is annoying as EQ is my best report at least for the next six months heh.

What I would suggest you do, if you're willing, is to look at your credit report and post your negatives (collections, public records, lates, etc) over in the Rebuilding Your Credit board here on this forum: we have legions of experienced people who have gone thorugh precisely what you are, and can share their information on how to tackle some of the things which may be on your report.  Some issues can be incredibly easy to fix, others may take some time, but it's an excellent first step towards repairing your credit.

[p-]

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amandak1026 wrote:...Equifax is 496...And TransUnion is 584.  I don't understand the discrepancy.   I don't want to go into a car dealership in 3 months completely unprepared, obviously. 

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You have a bit of work to do before you will qualify for a good rate on a car.  But don't be discouraged; most of us here have had similar trouble, and got through it.

As Revelate mentioned, there is likely different information on the reports.  Some collectors only report to one of the three CB's, so look for an account that is on EQ but not on TU.  Check the public record section too, in case you have a Judgement.  In my experience, public records seem to pop up more often on EQ.  Consider using annualcreditreport.com to see for free what's on your Experian report while you are at it.

Your credit reports are just snapshots telling a story about whether you can be relied on to pay as agreed.  And you can edit that story.

If you owe money to a collection agency, negotiate a PFD or payment in exchange for deletion.

If you have fraudulent items, dispute them.

Keep your balance low on only one card.  Utilization, or how much of your credit you are using, has a huge effect on your score.

If you have late payments on your history, but are caught up now, ask the bank to do a goodwill adjustmenty and erase the late.  The worst they can say is no.

Spend some time over at the "rebuilding your credit" section, and start with the most recent stuff, working your way back.

Welcome, and good luck!

[amandak1026]

Thanks so much for the replies.  I've been doing a lot of reading over at "Rebuilding Your Credit" so now at least I know where to start. I can do this!

[Anonymous]

You have found the right place.  Read, ask, listen and learn.  You can rebuild using proven techniques and the knowledge from the experienced posters on this board.  

Get the free reports, pay if you have to but find out what is keeping you below 600.  My experience is that by addressing one or two of the issues keeping your score down can result in some rather dramatic increases in your scores.   At that point, see where you stand and get on a long term plan to rebuild.

Good luck and welcome aboard!!

[p-]

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Blackrv7 wrote:My experience is that by addressing one or two of the issues keeping your score down can result in some rather dramatic increases in your scores.

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Same for me-  I had huge jumps after I resolved a few of my most recent baddies.  Once you see big gains, it's easy to keep momentum.

[thom02099]

Good Advice from everyone above ! !   Lots of good reading at the "rebuilding" forum. 

Only thing to add, and to maybe give you some hope, though not false hope...many car dealers do use an "auto-enhanced" score if you finance through them and allow them to pull your reports.  If, in your history, you have auto loans that were paid satisfactorily, this could influence your scores positively, since those scores frequently run a bit higher than your garden variety FICO.  And as your "regular" scores improve with age, so too can your auto enhanced scores. 

Also, as your scores improve, if you choose not to go through a dealership for financing, your improved scores could qualifiy you for better rates at your local bank or credit union.  If you're not a member of a credit union, this is a good option to explore, as they usually have better auto rates than banks. 

Another feature that many credit unions offer as a benefit is a free credit report analysis.  One of their financial specialists can assist you in evaluating your credit report, going over it with you in detail.  I've done this before, back when my credit wasn't so good, and even now, when it's better.  It's always a good idea to get a "new set of eyes" to take a look at your report objectively, and give you positive advice for dealing with any issues. 

Best of Luck to you ! ! !

ONWARD AND UPWARD ! !

[jropeter]

You can definitely do this! Do not be disuaded or discouraged at all. Use all of the resources this site offers: there are some amazing people on here with a world of knowledge that are more than willing to help you! 

[Anonymous]

One other thing, believe it or not, new car dealerships can approve you for a new car loan with lower scores than they can for used cars.  Got that from the horses mouth about two years ago.  My local bank at the time required a 645 for a used car loan, the car dealership was willing to loan for a new car well below that figure.  Get those credit reports and see if there is anything on them you can address.