The Tri-Merge Credit Report: More Data Drives Better Decisions

Equifax recognizes that homeownership is an important goal for many U.S. consumers, but it is also a big investment that must be planned for carefully. When determining what a homebuyer can afford, there are many factors to consider - such as the price of the home, current interest rates, taxes and insurance, and closing costs.

The total cost of owning a median-priced home increased by over $526,000 between 2020 and 2025. While the most substantial financial shift lies in recurring monthly payments (which climbed from an average of $1,940 a month in 2020 to $3,403 a month in 2025), closing costs are another expense that potential homebuyers must plan for, and these costs have increased as well - by over $2,000 from 2020 to 2025.

As potential homebuyers consider all of these costs, it is important to distinguish between negotiable costs and essential safeguards that protect their long-term financial health. A crucial part of the mortgage qualification process is the tri-merge credit report, which provides the most comprehensive verification of a borrower's credit history across all three Nationwide Consumer Reporting Agencies (NCRAs). The tri-merge report provides more data than an individual consumer report, helps lenders comprehensively assess the borrower's ability to repay their loan, and ensures the loan meets the high-security underwriting standards required for secondary market investors.

While the overall expenses associated with purchasing a home have risen, the credit report represents the smallest amount at closing. Of the over $2,000 in increased closing costs, only about $23 of that is attributable to tri-merge credit report, which includes three reports, one from each NCRA. Additionally, the tri-merge report accounts for less than 1.5% of total closing costs and only 0.005% of the total cost of homeownership. Yet, this vital tool plays an outsized role in expanding access, mitigating risk, and maintaining market stability.

The Long-Term Savings of Responsible Lending

The tri-merge credit report is the cornerstone of responsible lending practices and an investment that benefits borrowers, lenders, and the housing market because:

It Protects Buyers: By verifying a borrower's complete financial picture, the tri-merge credit report helps ensure they are approved for a loan amount they can realistically handle alongside their other financial commitments. The tri-merge report can help consumers gain access to credit and homeownership and prevents situations when consumers may otherwise be unscorable by a single bureau. In fact, more than 10 million Americans have a scorable credit file at only one of the three NCRAs.

​Additionally, the tri-merge standard supports consumers by providing:​​​​​​

• Lower Loan Costs: Accessing a full spectrum of credit information enables lenders to evaluate a consumer's financial profile more thoroughly, helping consumers avoid excess closing costs (loan-level price adjustments) by qualifying for better loan terms. The loan-level price adjustments charged as a percent of the loan amount by the Government Sponsored Enterprises (GSEs) can jump as much as 0.625% if a borrower's decision credit score falls into a lower score band.

• More Favorable Loan Terms: A tri-bureau ecosystem allows lenders to make the most informed decisions about loan eligibility, interest rates, and terms. Data from S&P Global research indicates that ~25% of the time, the difference between the average bi-merge and median tri-merge credit score was greater than 10 points - a score difference that can swing borrowers into new pricing bands. On a $350,000 loan, moving into a better pricing band can save borrowers $3,000 to $5,000 over the life of the loan.

It Helps Lenders Drive Greater Affordability: Evaluating data across all three NCRAs eliminates "data blind spots" like hidden debts or recent foreclosures that might only appear at a single bureau. Because bureau data varies, roughly 40 million Americans have significant score discrepancies across agencies - including 17.3% of auto loan holders who show a greater than 20-point difference in VantageScore 4.0 scores. Transitioning to modern scoring models like VantageScore 4.0 also drives greater affordability allowing mortgage lenders to cut credit costs by 45% (based on an Equifax internal analysis of standard mortgage reseller pricing weighted by volume as of September 2026).

It Strengthens the Housing Industry: Ensuring a borrower can responsibly manage their debt load is the best protection for not only the individual and lender, but for the housing industry. Standardizing risk for secondary market investors like the GSEs ensures market liquidity and stability.

Supporting Steps to Drive Broader Affordability

Equifax remains deeply committed to driving broader housing affordability:

• Equifax VantageScore 4.0 mortgage credit score pricing reduces loan acquisition costs and has the potential to drive $1 billion in industry cost savings, with more than 150 lenders already exclusively using it for certain types of loans. VantageScore 4.0 provides a 90% savings over lenders' current mortgage legacy credit score costs.

• Free VantageScore 4.0 credit scores will continue to be offered to all Equifax mortgage, automotive, card, and consumer finance customers who purchase FICO scores through the end of 2027.

• Equifax continues to enhance the value of mortgage solutions by delivering The Work Number® Report Indicator and additional alternative data including telecom, pay TV, and utilities attributes alongside the Equifax mortgage credit report at no cost.

See which expenses are truly driving the surge in homeownership costs.