TransUnion

Definition

TransUnion is one of the three major credit reporting agencies in the United States. It provides credit information and analytics to help businesses and consumers make informed financial decisions.

5 Must Know Facts For Your Next Test

1. TransUnion collects and maintains data on over a billion individual consumers globally.
2. It uses credit scoring models like VantageScore which can impact loan eligibility and interest rates.
3. Credit reports from TransUnion affect mortgage, auto loan, and credit card approvals.
4. Errors in TransUnion reports can be disputed through their website or by mail.
5. Lenders use TransUnion data to assess borrower risk during loan underwriting processes.

Review Questions

• What role does TransUnion play in the loan approval process?
• How can errors in a TransUnion report affect an individual's ability to secure a loan?
• What are some types of loans where TransUnion's credit data might be particularly influential?

Related terms

Equifax: One of the three major credit reporting agencies that provides similar services as TransUnion.

Experian: Another major credit reporting agency that collects and analyzes consumer credit information.

Credit Score: A numerical representation of an individual's creditworthiness, often derived from data by companies like TransUnion.