How Does TransUnion Affect Mortgages?

Your lender pulls the full TransUnion credit report, which includes personal data, account activity, public records, inquiries, and collections.

• Personal identification: name, address, Social Security number, and birthdate confirm you are the borrower.
• Trade lines: every open, closed, or charged‑off credit account, with balance, limit, payment history, and dates of activity.
• Public records: bankruptcies, tax liens, and civil judgments that may affect loan eligibility.
• Hard inquiries: up to 12 months of lender‑initiated credit checks, each potentially lowering your credit score.
• Collections and charge‑offs: past‑due debts sold to collection agencies, shown with amount and status.

TransUnion credit scores are a core component of the tri‑score model most lenders use, and they map directly to mortgage‑rate brackets. A score of 760 or higher typically lands you in the 'best‑rate' tier, while a 720‑759 score may add about 0.125 percentage points to the mortgage rate and a 680‑719 score can add roughly 0.25 percentage points; each 20‑point dip often translates to a small but noticeable rate increase.

If your TransUnion score improves before you lock, you can ask the lender to reprice at a lower tier; if it drops after the lock, the lender may adjust the rate upward within the allowed float (usually 0.125%‑0.25%). Staying in the same score bracket protects the rate you secured, which is why monitoring TransUnion activity matters until closing.

Most large‑scale mortgage lenders pull the TransUnion credit report as part of their standard three‑bureau pull, and many also accept it as a sole source for certain loan programs. As noted in the 'what TransUnion records your lender sees' section, lenders typically look at the same data regardless of the bureau, so having a clean TransUnion file matters just as much as any other report.

The following lenders are known to use TransUnion for mortgage applications:

• Rocket Mortgage (formerly Quicken Loans)  -  uses all three bureaus, including TransUnion Mortgage lenders that use TransUnion
• Wells Fargo Home Mortgage  -  standard three‑bureau pull, TransUnion included
• Chase Mortgage  -  accesses TransUnion alongside Experian and Equifax
• Bank of America Mortgage  -  retrieves TransUnion data for all loan types
• US Bank Mortgage  -  includes TransUnion in its credit check
• LoanDepot  -  uses TransUnion for conventional and FHA loans
• Fairway Independent Mortgage  -  relies on TransUnion as one of its primary sources
• Flagstar Bank  -  pulls TransUnion for most mortgage applications
• Navy Federal Credit Union  -  accepts TransUnion for member mortgages
• SoFi Mortgage  -  integrates TransUnion into its credit evaluation process

These institutions either pull all three bureaus simultaneously or, for specific products, may accept a standalone TransUnion report Which credit bureaus mortgage lenders use. Knowing which lenders depend on TransUnion helps you target your credit‑repair efforts before moving on to the '5 TransUnion issues that derail your mortgage approval' section.

• Incorrect personal details (misspelled name, wrong address) cause lenders to reject the file  - see 'what TransUnion records your lender sees-1'.
• Duplicate or outdated accounts inflate your debt‑to‑income ratio, making you appear over‑leveraged.
• Unpaid collections, especially medical bills, show as charge‑offs and can drop your credit score  - this ties into 'how TransUnion scores change your mortgage rate-2'.
• Misreported late‑payment flags or status errors lower your credit score and may push you into a higher mortgage rate tier.
• More than three hard inquiries within the past 12 months signal recent risk‑taking and can hurt your loan eligibility.

Hard inquiries on your TransUnion report can push your mortgage rate higher when they cause your credit score to slip enough to move you into a worse pricing tier. Lenders typically cut rates at every 5‑point band; a cluster of three or more inquiries within 12 months often drops a score 10‑20 points, which can add 0.25‑0.5 percentage points to the offered rate. This effect is most common with borrowers who already hover near the 'good'‑to‑'very good' cutoff (720‑739) and whose score elasticity is high.

A single inquiry - especially during the rate‑shopping window - usually leaves the score unchanged, so the mortgage rate stays intact. TransUnion treats the first three inquiries for a mortgage within 45 days as one, so the impact is negligible for most shoppers. If your credit history is solid (above 760) and you avoid additional pulls, the hard inquiry will not shift you into a higher‑rate bracket.

For more on how score changes translate to rate adjustments, see the previous section on TransUnion scores, and plan to pause credit activity as described in 'when to avoid credit changes before you apply.'How credit inquiries affect your score

Avoid credit changes in the 30 days before you submit a mortgage application. During this window a lender will trigger a hard inquiry on your TransUnion file; opening a new account, increasing a balance, or taking out a loan can drop your credit score enough to push your mortgage rate higher. Even if the inquiry itself is older, any major activity within the past 12 months still influences the scoring model used by most lenders.

Keep existing accounts exactly as they are: don't open or close credit cards, don't refinance, and don't let balances swing dramatically. Small, routine payments are fine, but any sizable shift may be interpreted as recent risk. Make all credit changes after the loan is underwritten; the next section explains whether you should freeze your TransUnion file while you shop for a mortgage.

Keep TransUnion unfrozen while you're actively shopping, because lenders need to run a hard inquiry to view your credit score and a freeze blocks that pull, delaying pre‑approval and risking loss of a favorable mortgage rate;

you can maintain an open file through the initial and final inquiries, then apply a temporary freeze or fraud alert after you've locked your rate to protect against identity theft, as the next section will show how a co‑borrower's TransUnion data follows the same rules.

A co‑borrower's TransUnion data can directly raise or lower your mortgage rate and affect loan eligibility. Lenders pull both reports, compare scores, and factor each borrower's debts into the overall risk assessment.

• Lenders typically apply the lower credit score to set the mortgage rate; a 640 co‑borrower can move a primary 750 score into a higher rate bracket.
• Debt‑to‑income (DTI) calculations add the co‑borrower's outstanding balances; high balances increase DTI and may require a larger down payment.
• Hard inquiries on the co‑borrower's TransUnion file within the past 12 months can drop their score by 5‑10 points, which can ripple to your rate.
• Negative items such as late payments, collections, or bankruptcies on TransUnion appear for both borrowers and can trigger a denial or demand stronger compensating factors.
• A strong co‑borrower (e.g., 800 credit score, low balances) can lower the combined risk profile, potentially qualifying you for a better rate or a larger loan amount.

Make sure both parties review their TransUnion reports before you apply; any errors should be corrected now to avoid surprises during underwriting and before closing.

Fix any TransUnion inaccuracies now so they don't cost you a higher mortgage rate at closing.

1. Order your free TransUnion report online and print the first page.
2. Scan every line for misspelled names, wrong addresses, outdated accounts, or balances that don't match your records.
3. Open a step‑by‑step credit dispute guide and file a dispute for each error directly with TransUnion using their online portal or certified mail.
4. Attach supporting documents - bank statements, paid‑off letters, or court orders - to prove the correct information.
5. Monitor the 30‑day investigation window; TransUnion must notify you of the outcome and provide an updated report.
6. Verify the corrected report reflects the changes before your lender pulls the final pull; any lingering mistake can still affect your credit score and mortgage rate.

Proceed to the next section on how rental and medical records on TransUnion affect you.

FICO 9 can't rescue you when the lender isn't using it. Many auto‑loan, mortgage and credit‑card issuers still run FICO 8 or proprietary scores, so the softer treatment of paid collections and medical debt in Experian FICO Score 9 never reaches the decision table.

Even if a lender does use FICO 9, the model won't offset other red flags. A brand‑new credit file, a high revolving‑balance ratio, recent hard pulls, or a large debt‑to‑income figure can still drive a denial or a high rate despite the score's forgiving factors.

First, ask the creditor which version they run; when lenders stick with older FICO versions is a common stumbling block. Then shift focus to the upcoming '7 practical steps to raise your FICO 9 quickly,' which work regardless of the scoring model in use.

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• Late‑payment typo spikes the rate. A borrower discovered a single 30‑day late mark that never happened on a utility bill. TransUnion's error knocked 45 points off the credit score, turning a 3.5 % mortgage offer into 3.75 % and adding roughly $12,000 in interest over a 30‑year loan. Consumer Financial Protection Bureau explains how such errors affect mortgage rates.
• Duplicate credit‑card entry inflates debt. Two identical revolving‑credit accounts appeared on the TransUnion report, doubling reported balances. The debt‑to‑income ratio jumped above the lender's threshold, so the lender raised the mortgage rate by 0.5 %. After the duplicate was removed, the original lower rate was restored. NerdWallet's guide on duplicate accounts.
• Old medical collection stays on the file. A medical collection from 2016 remained listed on TransUnion despite being paid in full. The lingering entry pulled the credit score down 30 points, shifting the borrower from a 3.5 % to a 4 % loan, costing an extra $20,000 in interest. Investopedia details medical‑bill reporting errors.
• Incorrect mortgage delinquency triggers denial. The report showed a 90‑day delinquency on a prior mortgage that the borrower never missed. The lender denied the application, but once the error was disputed and corrected, the borrower qualified for the original 3.625 % rate. Equifax's dispute process overview.
• Address mix‑up merges two consumers. Two individuals with similar names and addresses were combined into one TransUnion file, pushing the utilization ratio to 55 % and lowering the credit score by 40 points. The resulting mortgage rate jumped 0.75 %, adding about $30,000 in total cost. After the merge was untangled, the lower rate was reinstated. FTC on credit‑report mix‑ups.