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Most consumers are familiar with the process of applying for a credit card: The bank pulls your credit from one of three bureaus, and if you meet the criteria, you'll be approved. They may not realize that banks pull your score from the different credit bureaus and that your score (and approval odds) can vary as a result. That's why it's important to understand which credit bureau each bank uses for credit decisions.
Every bank uses Equifax, Experian, or TransUnion to evaluate creditworthiness — some even use more than one bureau. Which bureau is used depends on each individual bank, the type of credit product you're applying for, and the state in which you reside.
Understanding the three credit bureaus and knowing which one your bank uses will help you monitor your credit more effectively, improve your credit score, and improve the odds of being approved for credit in the future.
This guide helps you navigate the intricacies of credit bureaus, and how they work with the banks that use them.
The role of credit bureaus in credit card applications
Credit bureaus play a pivotal role in the credit card application process. They collect data from financial institutions to compile comprehensive credit reports and scores for individuals. These reports contain detailed information about an individual's credit history, including their payment history, outstanding debts, credit utilization, and length of credit history.
Lenders rely on these credit reports and scores to assess applicants' creditworthiness when considering their credit card applications. A higher credit score typically indicates a lower credit risk, signaling to lenders that the applicant is more likely to repay their debts. Meanwhile, a lower credit score may raise concerns about the applicant's ability to manage credit effectively, potentially leading to a rejection of the credit card application or less favorable terms.
Major credit bureaus used by banks
Banks use three major credit bureaus to make lending decisions: Equifax, Experian, and TransUnion. These institutions serve as gatekeepers of consumer financial histories, compiling data from various sources to generate comprehensive credit reports and scores. Here's a closer look at how credit bureaus, bank preferences, and practices shape lending decisions:
Equifax, Experian, and TransUnion
Equifax, Experian, and TransUnion are the three credit bureaus that gather U.S. consumer data to generate credit reports and scores. Each bureau has its own unique methodology, leading to potential differences in credit scores and information.
The three bureaus collaboratively developed the VantageScore credit scoring model, and Transunion uses VantageScore exclusively. Equifax and Experian also use the more extensive FICO model in addition to VantageScore to establish creditworthiness.
FICO and VantageScore calculate your credit score based on similar factors, and both scoring models range from 300 - 850.
The primary difference between these two scoring models is that FICO requires at least six months of credit history, while Vantage requires just one month. For this reason, consumers who are just beginning to build credit may have a slightly higher Vantage score.
Here's how each model weighs your creditworthiness.
VantageScore model
- Your payment history (35%)
- Credit utilization (30%)
- Length of your credit history (15%)
- Mix of your credit accounts (10%)
- New credit accounts (10%)
FICO scoring model
- Payment history (40%l)
- Length of your credit history and mix of credit accounts (21%)
- Credit utilization (20%)
- Amounts owed (11%)
- New credit (5%)
- Available credit (3%)
Despite these differences, it's important to note that the financial information reported to each credit bureau may vary, leading to potential discrepancies in credit reports across the bureaus. Therefore, it's essential to regularly monitor your credit reports from all three bureaus to ensure the accuracy and completeness of their information.
Bank preferences and practices
Banks recognize the importance of a comprehensive assessment of an applicant's credit history. While some banks prefer a specific credit bureau, others utilize multiple bureaus to establish a comprehensive assessment of an applicant's credit profile.
Capital One is notorious for pulling credit from all three bureaus, while American Express and Chase largely rely on Experian for most of their credit decisions.
Credit bureaus by bank
While most banks report credit information to all three bureaus, they often pull reports from just one source. While some banks are consistent in the credit bureaus they pull from, others may use different bureaus depending on which state the applicant resides.
Many issuers offer pre-screening, pre-qualification, or pre-approval tools so interested applicants can check their eligibility before accepting a hard credit pull for a new credit card.
Credit bureau used by American Express
American Express mainly uses Experian to pull credit information, though this can vary by state.
Amex issues many of the best credit cards, which are particularly desirable for their generous rewards. New card applicants can pre-qualify for American Express credit cards, which helps avoid a credit pull on an unsuccessful application.
American Express has stringent rules regarding welcome offers (often called credit card sign-up bonuses) and will notify existing card members during a credit card application process if they aren't eligible to earn a bonus on that new card. At that point, applicants can decide whether to complete the application or cancel before incurring a credit pull.
Credit Bureau used by Bank of America
Bank of America primarily uses Experian reporting data, though it pulls Transunion reports in some states.
Bank of America often sends preapproval offers to eligible applicants via email or regular mail, which increases these consumers' chances of being approved for a Bank of America card. If you're interested in applying for one of the best Bank of America credit cards, a preapproval offer is a great indication of your eligibility.
Credit bureau used by Chase
Chase Bank mainly uses Experian to make credit decisions, though it has been known to pull from Equifax and Transunion in select regions.
Chase is known for offering many of the best credit cards in the consumer market, and you can find perennial favorites such as the Chase Sapphire Preferred® Card in restaurant checks or travel wallets wherever you go. Chase has a wide range of cards to offer, but most require an excellent credit score for qualification.
Credit bureau used by Capital One
Capital One pulls your credit score from all three bureaus — Equifax, Experian, and TransUnion — when assessing credit applications. This policy provides Capital One with the most comprehensive credit profile for any given applicant. It also makes it slightly less appealing for consumers seeking a new credit card, since other banks pull from just one bureau.
Capital One offers a unique pre-approval tool for credit cards, which evaluates applicants based on household income and other factors before performing a hard credit check. You'll be shown a list of eligible cards and can choose to complete the application or walk away.
Capital One isn't the only issuer that lets you check eligibility before you apply for a card. Our guide to the best pre-approved credit cards mentions several other options from Chase and Bank of America.
Credit bureau used by Citi
Citi pulls credit data from all three credit bureaus depending on the applicant's home state. If you apply for a loan, Citi will review your score from all three bureaus. Citi credit cardholders also get complimentary access to FICO score information through Equifax.
Citi also offers pre-screening for cash back, rewards, low intro APR, and balance transfer credit cards. Applicants interested in getting one or more of the best Citi credit cards can input some personal information such as birthdate and household income to see which cards they're eligible to apply for.
Credit bureau used by Discover
Discover primarily uses Equifax and Experian to assess credit applications. However, it may also consider information from Transunion, depending on the specific circ*mstances of the applicant and Discover's policies. Discover credit cardholders can access free credit score information pulled from Transunion.
Discover's pre-approval tool lets applicants check their eligibility for the best Discover credit cards.
Credit bureau used by Wells Fargo
Wells Fargo primarily reviews credit information through Experian and Transunion. Wells Fargo also provides free credit score monitoring through Experian.
Wells Fargo also has a prequalification tool. One of Wells Fargo's best credit cards is the new Autograph Journey, which requires good to excellent credit.
How credit bureau information influences approval decisions
Credit bureau information plays a pivotal role when financial institutions make credit decisions. When assessing creditworthiness, lenders analyze various factors within credit reports to determine risk level.
Payment history
Your payment history is one of the most important indicators of reliability. Timely repayment of debts demonstrates a borrower's ability to manage credit responsibly, thereby positively impacting their approval chances.
Credit utilization ratio
Your credit utilization also carries significant weight. Your credit utilization ratio is the percentage of revolving credit that you currently use, divided by your total credit limit. For example, if you have a $5,000 credit line and spend $2,500, your utilization ratio is 50%.
Keeping this ratio below 30% demonstrates responsible credit management and can positively impact your credit score, increasing the likelihood of being approved for various lines of credit.
Credit history
The length of your credit history also plays a role in your creditworthiness. Longer credit histories are often viewed favorably than short ones as they provide more data points for lenders to assess borrowers' financial habits and reliability.
Your credit score will reflect all of these factors, though banks can review each component in more detail in your report. A high credit score enhances the likelihood of credit card approval and also influences interest rates and credit limits.
Consumers with stellar credit scores typically enjoy access to more favorable financing options, lower interest rates, and higher credit limits. Thus, maintaining a favorable credit profile is vital in any financial strategy.
Enhancing your credit profile for future applications
A strong credit profile increases your chances of approval for credit cards, mortgages, loans, and other lines of credit. Earning and maintaining a high credit score gives you the most favorable interest rates, loan repayment terms, and highest credit limits.
There are various ways you can strengthen your credit profile, from making timely payments to monitoring your credit utilization ratio and diversifying your credit accounts. Committing to good financial habits and actively monitoring your credit is critical to improving your credit score for credit card approval.
Regularly review your credit reports
Regularly reviewing your credit report is key to improving your score.Disputing errors on credit bureau reports can help you maintain the high score you deserve.
You can get a free credit report once a year from all three bureaus at annualcreditreport.com. Use these regular check-ins to monitor your credit file, verify the accuracy of reported information, and identify any potential errors that could negatively impact your credit score.
Consistent monitoring also enables you to identify areas where you could improve your credit management. You can pinpoint factors that may be dragging down your score, such as high credit utilization or missed payments. By regularly analyzing your credit reports, you can proactively implement strategies to address these issues, such as reducing debt balances and ensuring timely bill payments.
Strategies for building a strong credit score
Building and maintaining a solid credit score is essential for improving your credit profile and increasing your chances of approval for future credit applications. One of the most effective strategies is making timely payments on all your credit accounts. Late payments can significantly harm your credit score, so it's crucial to pay your bills on time, every time. Setting up automatic payments or reminders can help you stay on track.
You can also strengthen your credit profile by diversifying your credit accounts. Target a mix of installment loans, such as mortgages or car loans and credit cards, instead of focusing all of your credit on a single avenue.
Above all else, it's important to manage these accounts responsibly and avoid taking on more debt than you can afford to repay. By implementing these strategies, you can gradually build and maintain a strong credit score, improving your overall creditworthiness.
Credit bureau reporting frequently asked questions
Do all banks use the same credit bureau for credit card applications?
There isn't a single credit bureau that's universally favored by all issuers. Some banks pull from Equifax, some from Experian and others from Transunion when evaluating credit card applications. Other banks pull your credit report from two or even all three bureaus.
Why are credit scores from each credit bureau different?
Credit scores might differ between bureaus due to variations in the data each bureau collects, the scoring models they use and frequency of bank updates to credit bureaus. Additionally, lenders may report to one or multiple bureaus, leading to differences in the information available for scoring purposes.
Which credit bureau is the most accurate?
None of the credit bureaus are "more accurate" than the others, since they depend on your banks to accurately report your financial activity. You can ensure accuracy by monitoring your credit reports for errors.
What should I do if there's an error on my credit report from one bureau?
If you find an error on your credit report, dispute it directly with the bureau that issued the report. You can usually begin the dispute process online or by mail.
How often do banks update information with credit bureaus?
Update frequency varies across issuers and credit accounts, but most banks report financial activity to credit bureaus on a monthly basis.
Can improving my credit score with one bureau affect my score with the others?
Even though the three credit bureaus score credit slightly differently, improving your credit habits will typically raise your score across the board. If your score goes up with one bureau, you can
Can I find out which credit bureau a bank will check before applying for a credit card?
Banks usually don't share which credit bureau they consult, but some consumers share their experiences online. You can read customer reviews online, or reach out directly to your bank for more information.
Should I improve my credit score before I get a credit card?
We recommend improving your credit score for better chances of credit card approval.Our guide to the best credit cards for pre-approval can help you identify which credit cards you're most likely to be approved for.
Ariana Arghandewal is a credit card and reward travel expert and is the founder of Pointchaser. She has worked as an editor at The Points Guy, NerdWallet, and FlyerTalk.Her work has also appeared in Forbes, Fodor's Travel, and U.S. News Weekly.
Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.
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