Here's the catch: The auto dealer did not look at your TransUnion report, the financing manager relied on your Equifax report. Your Equifax contained a recent 60 day late notice from a creditor (which happened to be incorrect report by the way) and this took your score all the way down to 637. Unfortunately, you qualified for your loan, but since your credit score was lower, your rate was a lot higher, and you're going to end up paying the consequences of incorrect info that was contained on your credit report. Too bad you didn't know in advance that the auto dealer was going to be relying on your Equifax Credit Score. This is why you need to make sure all three credit reports are accurate.
Hey My Credit Score is Higher Than That...
It's important to know what is in your credit reports for all three credit bureaus. Here's Why:
Sometimes when you go for financing, quite a shock often occurs. You expect your credit score to be strong, even trending well above average. Then you get blindsided by a lower score than expected. In fact, the the actual credit report and score that is pulled is quite a bit lower. This can happen for a lot of reasons. For one, a creditor may have reported, possibly erroneously, that a 30-60 day late has occurred when this is not the case.
There are actually a wide variety of credit scenarios that could cause one bureau to have a significantly different score than the other. Most likely, it wouldn't be as a result of the different scoring formula used by one bureau as compared to another. A more likely scenario is that one bureau has an item or items that are not included in the other bureau's files. This is one of the best arguments for getting a 3-in1 credit bureau.
A 3 in One Credit Report refers to a report from all three credit bureaus combined into one. That's why a 3-Bureau credit report is also known as a tri-merge credit report from all three credit bureaus: Experian, TransUnion, and Equifax.
Your credit reports and credit scores are important to you because the information in your credit report determines your credit score and the higher your credit score, the better chance you have of saving a lot of money on a new home or refinance, automobile, insurance rates, even credit cards. The amount of money at stake can be substantial.
Why would you want to know what's in all three of your credit reports?
Why would you want a 3 in one tri-merge credit report? Let's say you applied for credit. You were trying to get the best possible deal on a new auto loan. You recently checked your TransUnion credit report and it was fine. Your score was 748 and this would normally qualify you for very favorable loan terms.
It's a fact of credit life: Credit scores can vary quite a bit from one bureau to the other. You never know which credit bureau will be used when you are apply for credit. It's up to you to make sure your credit is accurate all the time. No one else will do the job for you.