Which credit bureau is most important when buying a house

Experian, Equifax or TransUnion: Which Credit Report is More Important?

Q: Hi Lynnette,  I have noticed a difference between my credit reports from Experian, TransUnion and Equifax.

Can you tell me which credit report is more important to a lender?

A: As a general matter, no one credit bureau report is “more important” than the others.

In today’s economic environment, they are all vitally critical to your personal finances.

However, whenever you are seeking credit – perhaps a mortgage, car loan or student loan – then the most “important” credit report or credit score is the one that a lender pulls to determine whether or not to approve your loan.

Some lenders only pull one credit report. So let’s say you want to purchase a car and you require financing.

If the lender considering your car loan only pulls an Experian credit report, then that’s the most critical report.

The challenge, of course, for consumers is that you never really know which bureau report a lender will pull.

It could be Equifax, Experian or TransUnion – or perhaps all three.

Read: The Key Differences Between Your Equifax, TransUnion and Experian Credit Reports

Tri-Merged Credit Reports

For most mortgages, lenders pull something known as a “tri-merged” credit report, which gives them information from all three of the major credit bureaus.

Additionally, mortgage lenders typically use the “middle” score of your three credit scores to determine the rate and terms for a home loan.

For these reasons, you should always ensure that all information on all three credit reports is accurate and up-to-date, and that all your credit scores are as high as possible.

What credit rating do you need to buy a house?

You’ve spent years saving up your deposit for a new home. You’ve waited for the right moment. Now it’s here. The only thing left is to secure your mortgage. We can help show you how.

If you’re thinking of buying a home, you’ll need a credit rating that’s good enough to secure a mortgage. Your credit rating (also known as a credit score) is a snapshot of how you’ve managed money in the past – including past borrowing, repayments, how much of your available credit you routinely use, how many payments you’ve missed and several other factors to create a score. The higher the score, the better your chance of being offered a better deal on your mortgage.

There are three major credit reference agencies (CRAs) – each with a slightly different scoring system. So it’s a good idea to check your credit rating with all three to find out how you rate. That way, you’ll know whether you’re likely to get a mortgage.

How to maintain a good credit score during COVID-19?

Taking steps to protect and maintain your credit score has always been important. That’s especially true if you’re planning on buying a home.

So it’s important to stay on top of your finances during this challenging time. That includes paying your bills on time, and contacting lenders and service providers if you do run into trouble. Here are a few things you can do:

• Create a budget to know where you stand. The Barclays Budget Planner can help.
• If you foresee problems paying your loan or credit cards, contact them right away to explore your options.
• If you think you’ll be late paying your phone, utilities or other service providers, contact them to let them know and to discuss a possible arrangement. You can also find helpful advice at Barclays money management.
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• To help you manage during this period, you can also find valuable ideas and resources at Barclaycard coronavirus help and support about protecting yourself from fraud and managing your finances.
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• You’ll also find other information about managing your Barclaycard account during the crisis at the Frequently Asked Questions page.

What is the minimum credit score needed to get a mortgage?

Most of the top credit rating agencies have five categories for credit scores: excellent, good, fair, poor and very poor. The exact score you need will vary from lender to lender, since there isn’t a minimum credit score needed for buying a house. But the higher your credit score, the better your chances of getting the mortgage you need.

Each credit reference agency uses a slightly different scoring system, so your score will be different with each. Therefore, it’s a good idea to check with all the agencies before applying for a mortgage.

What are the main credit reference agencies?

The three main credit reference agencies in the UK are Experian, Equifax and TransUnion (formerly Callcredit). These are the ones most lenders rely on when considering someone for a mortgage. You can check your credit rating with all three agencies for yourself. It’s your right – and it’s free.

What is considered a good credit score?

Since different credit agencies use different rating systems, a good score will vary from one agency to the next. For Experian, a score of 881-960 is considered good, and a score of 961-999 is considered excellent. For Equifax, a score of 420-465 is considered good, and a score of 466-700 is considered excellent. For TransUnion (formerly known as Callcredit), a credit score of 604-627 is considered good, and a score of 628-710 is considered excellent.

To find out what an average score is, you can check out What is a good or average credit score.

Find out more about choosing a mortgage

Which credit score is most important for home loan?

What credit bureau do most lenders use?

Which of the 3 credit bureaus is most accurate?

What FICO score do home lenders use?