What is a credit score, and what is the difference among the two nationwide credit reporting agencies’ credit scores?
A credit score is a three digit number, typically between 300 and 900, which is designed to represent your credit risk, or the likelihood you will pay your bills on time. A credit score is calculated based on the information in your credit report.
The way your credit score is calculated and the contents of your consumer file may vary between the two nationwide credit reporting agencies (Equifax® and Trans Union of Canada, Inc.). This is because not all creditors report to both agencies and there are different credit scoring models.
While most creditors do report to both, you may hold an account with a creditor that only reports to one, or a creditor that doesn’t report to any. There are many different credit scores used by lenders, including credit scores provided by the two credit reporting agencies, and credit scores that are custom built and used by a specific lender.