Definition
A tri-merge credit report is a consolidated statement that includes records from Experian, Equifax and TransUnion credit reports.
Analysis
A tri-merge credit report is one credit report that matches common trade lines that appear on multiple credit reports so that the final “merged” credit report only shows the record once with the most recent data reported. A tri-merge credit report allows lenders to see a single master report that combines the components of the individual credit reports.
A tri-merge credit report will also show three credit scores by the three main credit bureaus. Depending on the lender, the scores may be based on a number of different risk scoring models.
The purpose of a tri-merge credit report is to quickly allow the lender to view credit scores for initial loan underwriting requirements as well as to review individual items to ensure that no single record may prevent the loan from being approved. For example, a tri-merge credit report that shows a large outstanding debt in default would likely prevent approval for most mortgage loans, since a judgment could interfere with the debtor’s ability to make their monthly payments.
