Three Credit Companies

• Many people think of credit reports as a single list of data, but in fact there are usually three different possible versions of any credit report, with many other variations possible. The three main credit reports are issued by the three largest credit bureaus and have the most weight among lenders. While some lenders only look at one type of credit report, the larger the loan the more likely it is that the lender will look at all three primary credit reports to get a better idea of the borrower's credit history.
  
  The three main credit bureaus are Equifax, Experian (formerly TRW), and TransUnion. They compile credit scores in similar ways, but give weight to different types of data. Information such as consumer records (products and services bought and sold), public records, account histories, previous inquiries, and similar data is used by all credit bureaus. It is typical to see a 40-70 point spread between the three scores.
  
  

FICO and VantageScore

• Equifax is the oldest of the three credit bureaus and uses the FICO scoring method to tabulate credit scores. FICO gives percentages of the score to different aspects of the credit report. Payment history is given the most weight at 35 percent of the tabulated score, while credit utilization (how much credit is being used versus how much is actually available) is slightly lower at 30 percent. The rest of the score is divided among the length of credit history (15 percent), types of credit (10 percent), and recent credit and inquiries (10 percent).
  
  Experian, the second primary credit bureau, uses VantageScore instead of FICO. VantageScore operates with a wider possible credit score and attempts to offer a more well-rounded look at a person's credit history. Payment history still has a major chunk of the score value (at 32 percent), but credit utilization is down to 23 percent. Next is credit balances, factored in at 15 percent. This is followed by depth of credit at 13 percent, recent credit at 10 percent, and available credit at 7 percent.
  
  

Other Factors

• TransUnion is the third primary credit bureau, and also uses VantageScore. Indeed, VantageScore is often used at all three credit bureaus so that a single score can be created between them, which is much easier for lenders to view. However, even though the formula is same, this does not mean that all the bureaus arrive at the same credit score or include the same information. The three companies pull up information using different computer systems and different contacts, and sometimes information can appear different or be recorded differently based on the data.