Equifax vs TransUnion in Canada: why your scores differ, and how to get both free

Most people check one score in a banking app and assume that is "their" credit score. In reality there are at least two reports about you, built by two companies, and a lender may look at either one. Here is how they differ, what each gives you free, and how to fix a mistake that only shows up on one of them.

What you can get free where you live

What Equifax and TransUnion have in common

FCAC describes the two bureaus the same way. Each one:

• tracks your credit history and creates your credit report and score;
• collects, stores and shares your credit information with lenders and others allowed to see it;
• only collects information about credit activity in Canada, which is why newcomers often start with a thin file (our guide to building credit covers that);
• updates your report and score at least once a month;
• uses a score that usually ranges from 300 to 900, where higher is better.

Your report can include your credit cards, loans, lines of credit and mortgages, what you owe, whether you pay on time, debts sent to collections, NSF payments, bankruptcies, and inquiries from lenders who requested your report in the last 3 years. It can also include phone, internet and utility accounts.

Equifax vs TransUnion side by side

The practical difference for most people is the score: outside Quebec and Ontario, the free score you get directly from a bureau is Equifax's. The reports are free from both, everywhere, and the report is where errors and fraud show up.

Why your Equifax and TransUnion scores differ

Three reasons, all from FCAC:

1. Different information. FCAC has said each credit bureau may have different information about your credit history. If a lender reports to one bureau and not the other, or reports on a different day, the two files differ.
2. Different formulas. Credit bureaus and lenders use different formulas to calculate scores and do not share the exact details.
3. The score you see is not always the score a lender sees. A lender may give more weight to certain information when it calculates your score.

So a gap between your two numbers is normal and not, by itself, a sign of a problem. A gap in the facts on the two reports, such as an account on one and not the other, is worth a closer look. If your score moved suddenly, our guide to why a credit score drops walks through the usual causes.

Worked example: one card, two reports

Maya has one credit card with a $5,000 limit. She pulls both free reports in the same week.

• Her Equifax report shows a balance of $4,500, last updated before her payment. That is $4,500 ÷ $5,000 = 90% of her limit in use.
• Her TransUnion report, updated after her payment, shows $1,000. That is $1,000 ÷ $5,000 = 20%.

FCAC uses this exact contrast as an example: someone who regularly owes $4,500 on a $5,000 limit may look riskier to a lender than someone who owes $1,000. Same card, same person, two snapshots taken on different days, so two different pictures. Nothing here is an error; the next monthly update usually brings the two closer. Our credit utilization guide has a calculator for your own cards.

Now suppose Maya also sees a phone account in collections on Equifax that she never opened, and it is not on TransUnion. That is different: it is a possible error or sign of fraud, and it needs a dispute with Equifax specifically.

Fixing an error that is on one report only

FCAC says you have the right to dispute any information you believe is wrong, and credit bureaus must correct errors for free. Because each bureau keeps its own file, dispute with each bureau that shows the error:

1. Gather documents that prove the mistake: statements, receipts, letters.
2. Use each bureau's dispute form. The bureau checks with the lender that reported the information. If they agree it is wrong, the bureau corrects it. If the lender says it is right, it stays.
3. Contact the lender directly; it may be faster to have them send corrected information to the bureaus.
4. Escalate if you are not satisfied. Federally regulated financial institutions must have a complaint process with access to an external complaints body.
5. Add a consumer statement, free, explaining your side if the result does not change.

Our step-by-step guide to fixing a credit report error has wording you can use. FCAC also notes the federal government does not regulate credit bureaus; complaints about a bureau go to the bureau first, then to your provincial or territorial consumer affairs office.

Fraud alerts and security freezes

If you suspect fraud, or your wallet, ID or phone was stolen, FCAC says to contact the lender involved, ask both Equifax and TransUnion to place a fraud alert, and report it to the National Fraud Reporting System. A fraud alert asks lenders to confirm your identity before approving credit. The bureaus may charge a fee. In some provinces and territories you can also place a security freeze, which blocks lenders from seeing your report; remember to lift it before you apply for credit.

Options people compare

These are options to understand, not recommendations. Checking your own report never lowers your score; see soft vs hard checks. More calculators are on the tools page.

How to check both your Equifax and TransUnion credit reports

1. Get your free Equifax credit report online, or by mail or phone with 2 pieces of ID.
2. Get your free TransUnion credit report, called the Consumer Disclosure, the same way.
3. Compare the two side by side: personal details, accounts, balances, payment history and inquiries.
4. Flag anything wrong or unfamiliar, especially accounts you did not open.
5. Dispute each error with the bureau that shows it, using that bureau's form and your documents.
6. Repeat at least once a year, and right away after a data breach or a lost wallet.

Sources

Financial Consumer Agency of Canada: Getting your credit report and credit score (free online reports from both bureaus, mail and phone requests, phone numbers, Equifax score free everywhere, TransUnion score free in Quebec and Ontario, monthly updates, checking does not affect your score, protecting your information); Credit report and score basics (2 main bureaus, Canadian activity only, 300 to 900 range, different formulas, $5,000 limit example, 3-year inquiries, consent rules in Nova Scotia, PEI and Saskatchewan); Checking your credit report for errors and fraud (free corrections, dispute steps, consumer statement, fraud alerts, security freezes, bureaus not federally regulated); and the FCAC news release of November 3, 2017 (each bureau may have different information; order from both at least once a year). The example is illustrative; the arithmetic is ours.