Two of the three biggest credit bureaus in the United States, TransUnion and Experian. Their services are the most widely used when people need some credit reports for whatever things they want to buy. Purchasing a car or home by credit is not a bad idea, but you most probably will be required to provide a credit report in order to be legitimate in the first place to be allowed to purchase the car or home by credit. So, should you choose TransUnion or Experian? See the comparisons between TransUnion vs Experian below.
TransUnion is the third-largest credit bureau in the United States, directly behind Equifax and Experian – we have compared the services of Equifax vs Experian in a previous article. Like the two competitors, TransUnion provides credit reports directly to consumers. TransUnion was founded in 1968 and is now headquartered in Chicago, Illinois. Today, TransUnion provides credit information and information services to at least 45,000 businesses and 500 million consumers in 33 countries.
Experian is a global information services group founded in 1996 that operates in 40 countries with multiple operational headquarters. The corporate headquarter is located in Dublin, Ireland. Experian is a partner in the UK government’s USPD Address Validation and Verify ID system.
If you often wonder why different credit bureaus often give different credit scores, this is because different companies use different procedures and algorithms. For example, Experian has its own scoring model, called Experian PLUS, which ranges from 330 to 830. It strongly correlates with the FICO scoring system, but is a totally different thing. Experian PLUS is quite thorough, and Experian reports usually give detailed credit histories. However, unlike FICO, Experian is rarely used as a standalone tool to make credit decisions.
TransUnion also offers all of the different versions of the FICO and VantageScore scoring systems. It collects different information, and it reports extensively about your employment. The score usually ranges from 300 to 850.
Just like many other companies, both TransUnion and Experian have faced several legal and regulatory issues. However, TransUnion has a somehow better track record than Experian. This is because Experian has some security issues in the past. Experian’s subsidiary and data aggregator, Court Ventures, sold personal information to an identity thief in Vietnam who then resold the information to identity fraud enabling websites. In 2015, Experian’s servers were hacked, compromising the private information of millions of people.
|- Provides different versions of FICO and VantageScore scoring systems||- Uses its own scoring system, Experian PLUS|
|- The FICO scoring system is often used as the primary evaluation tool||- Rarely used as a standalone tool|
|- Extensive employment history||- Detailed credit history|
|- Relatively better track record||- Bad track record regarding information security|
Between TransUnion vs Experian, TransUnion is generally more recommended. It provides several scoring options that you can choose according to what you need; there are various versions of FICO and VantageScore. The company also has a better track record.