What Is Good Credit Score Transunion?

A credit score is a numerical value that shows how creditworthy you are and thereby, how likely you will be to pay for the loans in time. Credit scores may vary from 300 to 850; the higher scores mean you are less risk to the lenders. TransUnion is one of the credit reporting industry’s so-called “Big Three”, which provides credit scores. TransUnion maintains the score’s classification as follows;

The following are the meanings of TransUnion credit scores: TransUnion employs a different scale of VantageScore which is also between 300 and 850 just like the familiar FICO ratings.

According to TransUnion, here is what the different score ranges indicate:

800-850 - Exceptional. It is noteworthy that those consumers who fall into this category of scores are highly unlikely to default on loans and other obligations. They also get the best and most appropriate financing facilities made available to them at the best rates. 740-799 - Very Good. Those who score here find it very difficult to default on repayments and get the cheapest loan rates in the market. These consumers are well regarded by the lenders in the market as having good credit risks. 670-739 - Good. Lenders and credit card companies should give consumers with good credit scores an approval for most of the loans and offer competitive interest rates to h low-risk customers. 580-669 - Fair. Hence, the scores in the fair range in low-risk and the company has a medium risk of defaulting on its obligations. An average credit score means one can easily get credit yet most of the time at a higher interest rate. 300-579 - Poor/Very Poor. According to TransUnion, it is poor to have a score below 580. At this level, the borrowers are rather likely to default and can face funding constraints. Loan limits are usually not extremely large and interest rate constraints are high when approved.

Therefore, using TransUnion’s standards for credit score, the minimum score that would be considered good begins from 670 as this score is favorable to creditors. However, a score of 740 or greater is considered to be very good or excellent – the higher the score, the better.

What Affects the TransUnion Credit Score FICO scores and the VantageScore used by the TransUnion VantageScore algorithm are nearly identical, both of them use the same categories and ratios to calculate your number.

Payment history, amounts owed, credit history length, new credit requests, and credit mix each influence your score in the following way:

• Payment History - 35%: Out of all the payment parameters assessed, making payments fully and on time has the greatest impact. Late payments are particularly dangerous as they result in a reduction in your score.
• Credit Utilization - 30%: But managing your total credit utilization, where you should aim for less than 30 percent of the total credit limits on your cards and loans. This is true because balances relative to limits are greatly affected by credit score, and therefore high balances give you a poor score.
• Credit Age/History - 15%: The fact that credit has been used responsibly over a long period strengthens credit. The new accounts factor brings down scores; periods or a short history suggest that the company has many accounts that affect scores.
• New Credit Applications - 10%: Credit should only be applied when it is necessary. Most applications in a given period are perceived as being more risky than a few applications in a long period.
• Credit Mix - 10%: It is more us if you ha have different forms of credit to manage – credit cards, auto loans, mortgages, and so on. However, the amount of one type may decrease the scores slightly if there is an excess of it.

Paying more on the usage of revolving credits such as credit cards while ensuring that all bills are paid on time over time leads to a drastic increase in the scores. Even when applying for more new credit at a less frequent rate, it also aids in the creation and preservation of very good TransUnion scores.

If you are interested in finding ways that you can use to enhance your TransUnion credit score, there are several measures that you need to take.

If your credit score is lacking with TransUnion, here are the most effective ways to improve it over time:

First, get copies of your credit reports and review them for inaccuracies. Any errors are to be made through an appeal to the bureau. Here I have mentioned to pay all the bills on or before the due date in the future. It can take up to several months to reverse the effects of those few late payments on your credit score. If it will assist in managing expenses, make arrangements to have it automatically deducted. Bring down the balance on credit cards and other credit that can be re-advanced below thirty percent. If possible, users should pay off all the cards instead of partially paying off each account balance. It is advised to not close old credit card accounts that have been active for a long to reduce credit history. Never apply for new credit cards or loans if it is not very necessary, but if for example, one wants to fund a very important event or project. The contention that the scores will be dropped temporarily is true when there are too many applications. If they have excellent long credit history you could acquire the status of an authorized user on someone else’s credit card. It can influence the scores and have a good record so that you can have good grades as well. Take measures that help you implement and maintain good credit habits so that you can improve your score steadily over time. It is therefore essential to be patient and allow good financial habits to work out and produce the necessary results on credit profile.

Frequent monitoring is also possible with TransUnion credit score, so you will be aware of the results. Secondary sources allow you to obtain VantageScore for free using your banking institutions and credit card companies. Or you can go to the TransUnion personal site or the mobile app to get your report right away. It provides a way of tracking the outcome, that is, the favorable change in credit management over a given period.

Remember to be conscious of your strong credit habits to sustain good financial overall health. Combining word of mouth and effort, maintaining good TransUnion scores, and obtaining credit from lending companies to finance the important needs in life is possible.

Ready to boost your credit score? Call +1 888-804-0104 now for the best credit repair services near you! Our expert team is here to help you achieve financial freedom and improve your credit. Don't wait—get started today!