If you’re wondering how accurate a Transunion credit score is, it’s probably because you want a high enough score. In case you don’t know, although you sure do, it is important to have a high credit score to achieve greater financial advantages: when requesting a loan and getting a good rate, when renting an apartment, or buying a car and needing good conditions.
Transunion is one of several companies dedicated to calculating credit scores in the United States. They have global information on the different banks’ financial movements, which helps them to play an intermediary role between people and companies.
So maybe it’s possible that if you need to know your credit score, you need to contact Transunion to find out. That is when you wonder how they calculate the necessary data to find out your score and also what advice they can give you to improve it and thus achieve more financial capacity.
What are Transunion’s credit score ranges like?
Clients going to Transunion will have to provide data on their economic activity in recent years. If your bank is among the list of Transunion collaborators, then you will not have to provide your data but give the necessary permissions for them to receive it.
Once Transunion has your data, they will assess your financial health and calculate your credit score. According to your data, you can get a credit score of between 300 and 850 points, with 720 being considered a very good score to obtain solid and attractive loans.
In any case, Transunion can continuously evaluate your score, which means that they also give you advice on how to act. For example, they can warn you that sometimes the score fluctuates quickly. If you ask for a loan from the bank for a mortgage, the score may drop when granted. However, when you make payments in a timely and orderly manner, they will go up quickly.
Tips that can help you improve your credit score
If Transunion gives you its calculations on your credit score, which is low and poorly marked, then you will have to start thinking about how you can improve it. We can assure you that the credit score that Transunion gives you is very accurate, and therefore there is almost no room for error.
So if they give you a bad credit score, you must follow some tips to improve it and thus be able to opt for good financial health. Let’s see some suggestions that Transunion will also give you to improve:
- Most financial institutions are going to offer you, of course, to use all the credit of the card that you need for your expenses from month to month. But the truth is that to have a good credit score, it is advisable not to use too much. It is better to use the money from your income and only reach a maximum of 30% of the credit. This will keep your financial health from worsening and your score from being low.
- Another tip for your credit score to be good is to be very punctual with the repayments of the loans. Since it can happen to all of us that we miss a date, the best thing you can do is to set up automatic payments so that your bank pays it on time every month without you having to worry.
- Finally, and especially if you have a good credit score and don’t want it to go down, you should take advantage of the cash rewards of your credit card more than using the credit itself. This is so that your score does not fluctuate so quickly, and thus you do not have problems facing other loans in the future.
In short, if you were wondering how accurate the credit score that Transunion elaborated on you was, we have to confirm that it is very faithful to the reality of what the banking entities from which you have to request a loan are going to analyze. It is the same for any other situation in which they ask you for your score.
We recommend that you heed his best advice on how to improve your credit score and that, of course, you get the credit.