TransUnion is one of the major credit reporting agencies and uses the FICO credit scoring system. FICO scores range from 300 to a best possible score of 850. TransUnion credit scores are determined by your credit history. You can purchase access to your credit report and credit score through the TransUnion website.
Compositon of TransUnion Credit Scores
Your payment history makes up 35 percent of a TransUnion credit score, so a delinquent bill can lower your score a lot. Total debt accounts for 30 percent, so excess debt also puts a big dent in a score. The type of debt counts for 10 percent. TransUnion also looks at how often you apply for credit. Applying for new accounts too often can lower scores by up to 10 percent. The last 15 percent is based on the length of your credit history, so a long record of good credit use enhances a TransUnion credit score.
Improving TransUnion Credit Scores
There are several ways to pump up your TransUnion credit score. First, make payments on time. If you absolutely can’t get a bill paid by the due date, contact the creditor. Creditors will often forgo reporting a late payment if you make a payment arrangement. Keep credit card balances low and only apply for new credit accounts when you need to. Avoid closing old credit accounts with good payment records, because this extends the length of your credit history. Monitor your credit report and ask TransUnion to fix errors. The Federal Trade Commission authorizes one provider, AnnualCreditReport.com, to furnish a free copy of your TransUnion credit report each year.