topic Re: New to the Board - UPDATED EQUIFAX QUESTIONS in Understanding FICO® Scoring

New to the Board - UPDATED EQUIFAX QUESTIONS

gingerdad — Fri, 19 Oct 2012 17:45:07 GMT

UPDATE - FOUND ANOTHER THREAD WITH FOLKS EXPERIENCE SIMILIAR DIFFERENCES IN EQUIFAX SITE SCORES AND EQUIFAX FICOS ON MY FICO. THOUGHTS ON THE OTHER QUESTIONS BELOW ARE APPRECIATED.

Hi all new to this forum. Struggling to understand differences in Equifax reported scores.

Here are the facts. I have an equifax family plan and the following reported scores:

Latest Credit Score

Equifax

As of 09/26/2012

761

EXCELLENT

TransUnion

As of 09/26/2012

780

EXCELLENT

Experian

As of 09/26/2012

753

VERY GOOD

However, starting my own business and was turned down by US Bank for a working capital line based on their reported FICO score of 694 (they gave me a business line of credit for almost twice the rate). I came to myfico and ordered my fico score here and sure enough, getting the following reported:

Your FICO® score from Equifax is

694 as of October 17, 2012

Real basic question - how come my equifax score on the equifax site is almost 70 points higher than my FICO score "from equifax"? I realize the different bureaus use different methodologies, but as an initial matter, I am trying to understand why there is such a big difference in 2 scores described as "equifax".

2nd question - I had several inquiries about 11 months ago when I applied for a car loan; anyone have success in getting those consolidated into one?

Finally, I have a single collections that is almost 6 years old. It was for $184 and resulted from a miscoded on the insurance company's part. TheY eventually covered the claim, but not before it was handed over to collections. Anyone have ideas on how to get this reported other than as a collections matter?

Re: New to the Board - UPDATED EQUIFAX QUESTIONS

gingerdad — Fri, 19 Oct 2012 17:48:57 GMT

Here is what myfico is saying is helping and hurting

Hurting your score

1. Collection
2. Short account history
3. Seeking credit

Helping your score

1. No missed payments
2. Low credit usage
3. Recent credit card use

Re: New to the Board - UPDATED EQUIFAX QUESTIONS

GregB — Fri, 19 Oct 2012 20:28:57 GMT

The account information on the reports from Equifax is all correct.

The scores, analysis, and recommendations is all garbage.

The EQ FICO from here is a real score actually used by most lenders including virtually all mortgages.

If you are going to use a product to monitor your reports such as your Equifax service, just ignore the scores and advice.

Re: New to the Board - UPDATED EQUIFAX QUESTIONS

Asailorshort — Sat, 20 Oct 2012 01:07:41 GMT

Ginger dad,

Your inquiries from 11 months ago will stop affecting your score in another month. They'll stay on your report for another year after that (2 yrs total), but they are not calculated in your score after that point. If they were all in a very short time period (typically 2 wks) they are supposed to be calculated as one inq. However, there is no way to 'consolidate' them. They'll continue to show up on your report as individual inqs from the various individual creditors. But since they stop affecting your score in a month, I wouldn't recommend doing anything even if you could.

Also, in regards to the collection, kit will fall off your report at 7 - 7.5 years. How close to 7 yrs is it? It's likely still costing you a few points and there are some things you can do such as GW or PFD if it's past SOL. Many ppl have had success with these but some have had problems with the acct appearing newer or some action they take inadvertently resetting SOL. I'm not advising against GW or PFD. Rather I'm simply saying that if this collection acct is going to fall off soon and you don't immediately need any credit (though from your post it appears you are trying to get a business start up loan), it can sometimes be best to let old 'baddies' simply die a natural death which happens at the 7-7.5 yr mark).

finally, I know none of this answers your original question about the score discrepancies. they are both using the same info but using different scoring algorithms. The one from here is your FICO and the score that 99% of lenders use. The one from EQ is what we call a 'FAKO.' It is not uncommon for ppl to have differences of 50-100 pts or more between their FICOs and FAKOs.

Re: New to the Board - UPDATED EQUIFAX QUESTIONS

gingerdad — Sun, 21 Oct 2012 00:31:28 GMT

Thank you both - very helpful.

Just signed up for a 2-yr thing on equifax, now regretting it. If I keep the equifax package and just monitor score on myfico, any suggestions on which package to get (I think there is a "standard" package).

Also, didn't follow all of the acronymns:

GW - EDIT - GOOD WILL LETTER (FOUND ON FORUM)

PFD - ?

SOL - statute of limitations.

PPL - ?

I actually paid the amount in its entirety to the collection agency years ago and it will be 7 years following first dequincy next November. Would love to get it off before then as it is conceivable my credit will be evaluated irrespective of further credit needs as I am raising some money for the start-up.

Re: New to the Board - UPDATED EQUIFAX QUESTIONS

llecs — Sun, 21 Oct 2012 00:33:04 GMT

Welcome to the forums!

I'd suggest reading the following:

Common Abbreviations

Credit Scoring 101 - great for knowing what is in your credit score and to see how your score is impacted.

What Steps Do I Take - great for learning the repair process.

and Example letters - PFDs, GWs, DVs, etc.

Re: New to the Board - UPDATED EQUIFAX QUESTIONS

Shogun — Sun, 21 Oct 2012 13:28:23 GMT

It looks like you've just learned about Fakos vs Ficos. The scores they all use are just about worthless. I always say a FAKO score is +/- 200 points of what your FICO is. You have an old paid collection. See if you can GW that off and you'll be doing just fine. Good Luck.

Re: New to the Board - UPDATED EQUIFAX QUESTIONS

gingerdad — Mon, 22 Oct 2012 15:39:36 GMT

Thanks for the additional info and thoughts on FICO v. FAKO; checking those links out now.