Introduction
Loan companies lend money to the borrowers for multiple reasons, particularly personal and business loans. Loan companies need to gather and keep the record of their consumers. It enables them to track the history of the borrower and make future credit lending decisions. Transunion, Equifax, and Experian are the three significant U.S-based credit reporting agencies. Let us know ‘Loan Companies That Use Transunion Only’.
Transunion is a service used by loan lending agencies that keep the information and record of the debtors to produce credit records and valuation. For budgetary control reasons some companies need to use transunion to keep a record of the debtor’s account, this helps the lenders to either accept the loan request or reject it. The loan lending companies that use the transunion service have some set uncompromising rules that need to be met by the consumer to get the loan approved by the loan companies. Besides this, creditors can also confine the consumer from taking a loan from more than one loan company particularly if the amount is huge.
What is a loan?
By definition, in finance loan is a certain amount, property, etc. lent to an individual by a single person or a group of individuals who agreed to pay it back after a particular duration of time with or without interest.
Loan structure:
Basic components of which loans consists are interest rate, security component, and term (the time duration to return the amount of loan).
Reason for lending a loan:
Anyone can be in a need of loan at some point in their lives. Usually, the reasons are somewhat personal like a student loan, home loan, business loans to finance one’s business, etc.
Sources of money burrowing:
Currently, eight sources lend money to the person in need. A loan is a contract between lender and consumer that specifies particular terms and conditions. It comprises of amount, time, and interest of how one will pay the loan e-g Banks, financing companies, Public agencies, etc.
Transunion:
It is an American agency that reports on consumers’ credit. It collects and organizes information about a billion consumer individuals of the company. It gathers data from thirty countries in the United States.
Purpose of Transunion:
It is a worldwide company with factual data and discernment that acts as a trustee between businesses and consumers. It confirms that every consumer is accurately depicted in the marketplace. Keeping a track of the credit history of the debtor aids the loan companies in lending money to the requestor by keeping in mind the odds in their credit history of them.
Companies that use Transunion:
Few loan companies only use Transunion to keep credit reports of the borrower and make lending money an easy process for both company and the individual who is taking the loan. These include:
- Upgrade
- Prosper
- Avant
- Payoff
- Alliant
- Barclays
Benefits of Transunion for employees:
It includes benefits like:
- Performance Bonus
- Retirement Plans
- Health and Wellness
- Dental Insurance
- Vision Insurance
- Life Insurance
- Health Insurance
- Paid-Time off
- Vacation Policy
- Paid Holidays
- Maternity/Paternity Leave
Conclusion:
The loan companies that use transunion services to lend money to their consumers check the credit history of the borrower for the approval of the loan. It provides a guideline to the burrower and also allows lenders to look into the odds of the consumer’s credit history to issue a loan to the client depending upon his/her credit odds. Although online creditors such as Upgrade, prosper are the best choice for lending money. But it comes with many strict loan terms and conditions:
- They can confine the consumer to take loans from more than one loan company if the amount is huge
- Secondly, even when the Transunion score of the consumer is enticed. The consumer still needs a deposit account to apply for a personal loan.
FAQs:
- When Transunion was introduced?
It was introduced in 1968 by Union Tank Car Company as their multinational company.
- Does Transunion lend money?
No, it does not provide a loan to individuals. The main purpose of Transunion is to keep a record of the credit history of debtors and generate reports and scores of the consumer’s credit.
- Is Transunion reliable?
Yes, Transunion is considered an accurate credit source but its credit score may differ from other credit scoring agencies.
- What does Transunion offer to its consumers?
Its services include keeping a track of your credit, theft protection that helps consumers from getting their pera leaked, and other utilitarian favors.
- What is a good score for Transunion?
As Transunion uses VantageScore to score the credit of their consumer. They consider a score between 720 and 780 as a good score.
- Does every loan require Transunion?
No, not every loan needs the credit history of the debtor such as student loans, personal loans, pay-day loans, etc.
- Is Transunion different from Equifax?
No, the only difference is they both use different models for scoring the credit of the debtor.
