Why Is TransUnion Score Lower?

Your TransUnion score can be lower because the information TransUnion receives may not match what Equifax or Experian have, resulting in different account histories, balances, or payment dates showing up on one bureau but not the others. Lenders often send updates at slightly different times, so a recent payment might appear on Equifax within a few days while TransUnion still lists it as past‑due.

TransUnion also applies its own scoring model, which weights factors such as credit utilization and recent inquiries differently than the FICO model most lenders use on Equifax and Experian. For example, a high balance on a revolving account can depress the TransUnion score more sharply, and a hard inquiry may cause a temporary dip that other bureaus treat as less significant. These model nuances mean the same credit profile can produce a lower number on TransUnion.

TransUnion score comes from a proprietary algorithm that emphasizes recent payment behavior, trends in balances, and the speed of recent activity, whereas FICO scores rely on a five‑factor formula that gives the most weight to long‑term payment history and credit mix. Because TransUnion looks at the last 12‑month pattern more aggressively, a fresh late payment or a sudden spike in utilization can shave points off the TransUnion score faster than it would a FICO score. (See TransUnion's scoring model.)

VantageScore, created jointly by the three bureaus, uses similar factors but assigns different weights, includes alternative data such as rent and utility payments, and treats inquiries less harshly. Consequently, a consumer with a thin file or recent positive non‑traditional payments may see a higher VantageScore than their TransUnion score, which may still penalize high utilization or recent delinquencies more heavily. (See VantageScore model.)

A 30‑day, 60‑day, or 90‑day missed payment can drop a TransUnion score by dozens of points, because payment history makes up roughly 35 % of the model and recent delinquencies are weighted most heavily (see how late payments affect credit scores).

• Each additional 30‑day increment typically adds 30‑110 points loss; later delinquencies cause larger hits.
• The late‑payment entry remains on your TransUnion file for up to 7 years, but its impact fades after 12‑24 months.
• Multiple late marks within a short span trigger harsher penalties than an isolated incident.
• Late payments can raise risk flags that also affect the cost of new credit inquiries, linking to the next section on hard inquiries.
• Bringing the account current, requesting a goodwill removal, or correcting a reporting error can stop further score erosion.

• Using more than 30 % of your total revolving credit can drop a TransUnion score by 20‑40 points, especially if the high balance sits on a single card.
• TransUnion calculates utilization both per‑card and overall; a maxed‑out card hurts the score more than a high aggregate ratio.
• Paying down balances to push utilization below 10 % often triggers a quick rebound in the TransUnion score.
• Asking for a credit‑line increase, spreading debt across several cards, or keeping balances low can keep utilization from hurting your TransUnion score.

Hard inquiries can knock a few points off your TransUnion score, but the hit is temporary.

Each hard pull signals a new credit request, and TransUnion's model typically deducts 5‑10 points for the first inquiry, with diminishing impact for additional pulls. The inquiry stays on your report for 12 months, yet its weight fades after about six months, so the score often rebounds without further action.

Because the model treats inquiries as a short‑term risk, opening a new account after a hard pull can cause an extra dip, a point you'll explore in the next section on 'opening new accounts and the short‑term score hit.'

Opening a new credit account can knock a few points off your TransUnion score, usually for the next 6‑12 months. The dip comes from the hard inquiry and the reduction in average account age, both of which the model weighs heavily in the short term.

1. Expect a 5‑10 point dip from the hard inquiry; the effect fades after about 12 months (hard inquiry impact explained).
2. Watch your average age - adding a brand‑new account lowers the weighted age of all accounts, pulling the score down until the new line ages.
3. Space out applications - wait at least six months between new accounts to give the score time to recover.
4. Keep older accounts open - closing a long‑standing card erases positive history and magnifies the age drop.
5. Boost utilization - increase the credit limit on an existing card or keep balances low to offset the new account's effect.
6. Monitor the change - check your TransUnion score after 30, 60, and 90 days; a temporary dip is normal, and the score typically rebounds as the new account ages.

Collections, charge‑offs, and public records can knock dozens to hundreds of points off your TransUnion score because they signal severe credit risk.

• Collections - unpaid debts sold to a third‑party collector. TransUnion may drop the score 50‑150 points, and the entry stays for up to 7 years.
• Charge‑offs - creditor writes off a debt after 180 days of non‑payment. Expect a 100‑200‑point hit; the record also remains for 7 years.
• Tax liens and civil judgments - government‑issued claims for unpaid taxes or court‑ordered debts. These can reduce the score 100‑200 points and may linger for 7‑10 years, depending on the filing type.
• Bankruptcies - Chapter 7 appears for 10 years, Chapter 13 for 7 years; both can erase 200‑300 points from the TransUnion score.

Each item weighs heavily on the 'derogatory' factor of TransUnion's model, which treats them as stronger signals of default than a single late payment. What collections do to credit scores illustrates this impact across bureaus.

Understanding how long these negatives stay on your TransUnion report prepares you for the next step: learning the exact reporting periods for each type of item.

Negative items stay on your TransUnion report for a set time: most derogatory marks - late payments, collections, charge‑offs, and most public records - remain for seven years from the date of first delinquency; a Chapter 7 bankruptcy and tax liens linger ten years; a Chapter 13 bankruptcy drops after seven years; civil judgments also follow a seven‑year rule. If a creditor reports the date incorrectly, the clock may start later, but the maximum period does not exceed these limits.

After the reporting window the item must disappear automatically, though errors can keep it longer and are covered in the next section on errors and merged files. For the official reporting periods see the FTC guide to credit reporting periods.

• Reduce credit utilization to below 30 % by paying down revolving balances; this can lift the TransUnion score within a month.
• Dispute inaccurate or outdated items on your TransUnion file; once corrected, the score may rise instantly.
• Bring any past‑due accounts current and ask lenders to remove late‑payment notations; a clean payment history can improve the score quickly.
• Request a goodwill adjustment from creditors for a single missed payment; if granted, the negative mark may be deleted.
• Freeze or limit hard inquiries by postponing new credit applications; avoiding fresh inquiries prevents a temporary dip.
• Set up automatic payments to avoid future delinquencies; consistent on‑time payments reinforce a positive trend.
• Keep old accounts open and active; longer credit history can boost the TransUnion score over time.

Errors and merged (mixed) files on TransUnion are inaccurate or combined records that can drag your TransUnion score down. They arise from data‑entry typos, outdated information, or the bureau's algorithm linking two similar consumer profiles into one file.

A common scenario: a typo in your Social Security number merges your record with a neighbor's, adding their credit card balances to your report. Another example: a collection agency files a debt under the wrong name, so a collection that belongs to someone else appears on your TransUnion report. Duplicate entries, such as two 'Account 1234' listings for the same lender, also lower your score.

Spot these issues by checking for unfamiliar accounts, addresses, or negative items that don't match your history, then dispute them through the TransUnion credit dispute portal.

Identity theft or fraud can cause a sudden drop in your TransUnion score when unauthorized accounts, fraudulent inquiries, or bogus public records appear on your file. Because TransUnion often receives updates from lenders before Equifax or Experian, the negative items may show up only on the TransUnion report, making that bureau's score look lower than the others.

To limit the damage, place a fraud alert or a credit freeze with TransUnion, then dispute any suspicious entries within 30 days. Continuous monitoring will catch future attempts early, and once the errors are removed the TransUnion score should rebound, setting the stage for the next section on errors and merged files.