General Credit Topics

[RecoveringMyLife]

Last month I had a Eq Fico of 611.  I thought I would try for a cc with my credit union.   I got a call from them the next morning and was told that I had just missed qualifying for a cc by a few points.  She could not tell me what score they are looking for. Checked Equifax and saw that my score had dropped to 605.

Ok, now today with a score of 619 and a bankruptcy from 03, I call and speak to the same person I spoke with last month.  She says they do not go by FICO they go by Pennacle which is usually a bit lower.  She still could not tell me if I would qualify for a Visa with a 619 FICO Score, but did ask me several times if I wanted a personal loan.  I do not need one, but we did discuss an auto loan in perhaps a few months.

Anyway... after reading here for a few months, I have been paying every month for scores from all three CRAs.  I was sure that FICO was what I needed to follow.. then today I hear from the one place from which I want to get my loans and CCs that I need to have a high PENNACLE.  What the heck is THAT?

Message Edited by RecoveringMyLife on 04-10-2008 06:34 AM

Message Edited by RecoveringMyLife on 04-11-2008 08:16 AM

[MidnightVoice]

According to Wiki:

In the U.S., three credit reporting agencies, Equifax, Experian, and TransUnion, calculate a borrower's credit score using their own different computation formulas. The scores they generate (with trademarked names), differ in what they mean to predict, the statistical methods used to determine a credit-worthiness score, and what data are used and how they are weighted. Beacon, Beacon 5.0, Beacon 96, and Pinnacle scores are available only from Equifax; Empirica, Empirica Auto 95, Precision Score, and Precision 03 from TransUnion; and the Fair Isaac Risk Score is available from Experian. Although the Fair Isaac Corporation develops these credit score versions for the different agencies, they are different numbers, and are periodically updated to reflect current consumer loan repayment rates.

[RecoveringMyLife]

I do not get it!  I thought I was on my way to getting a nice CL from my CU.. then this.   The rep said that she does not even know how people can even find out what their Pinnacle score is.  I tried calling Equifax today, but their systems are down. 

[haulingthescoreup]

Pinnacle is just the name for one of the versions of your FICO EQ score. When they tweak their formula, they tweak the name.

It is the responsibility of your CU to pull your EQ score, no matter which version they choose to use.

Lenders generally call FICO scores by whatever version they use, rather than by the CRA name as we do. So they might call your EQ score your Beacon or Pinnacle score; your TU score your Empirica score; and your EX score your Fair Isaac Risk Score, as the Wiki article posted by MV says.

According to this November 07 article, Pinnacle is EQ's version of the NextGen score:

In addition to the classic FICO scoring method, Fair, Isaac, and Co. developed its NextGen FICO scoring method in 1999. The NextGen FICO is called the Pinnacle Score at Equifax, the FICO Risk Score, NextGen at Trans Union, and the Experian/Fair Isaac Advanced Risk Score at Experian. The NextGen FICO was designed to better identify a person's true credit risk while giving less weight to factors that are not thought to have as much bearing on a person's likeliness to repay. Under the new scoring model, many people have a better credit score, making it easier for them to get loans and better rates. Though Fair Isaac touts this new scoring model as a breakthrough in the credit scoring system, many lenders are hesitant to use it due to unfamiliarity with the new system, as well as a lack of time-tested proof that the new scoring model is indeed better than the tried and true classic FICO system. You will probably see a gradual shift in the use of the NextGen FICO credit score in the future, but for now, the majority of lenders still go with the original FICO scoring model because it's what they know.

http://www.financeglobe.com/Finance/Articles/articles/50/1/Your-Credit-Score/Page1.html

[RecoveringMyLife]

Thanks to both of you.  Hauling, I was responding in the other link.  I tried calling the CU, but the lending department is closed.  I will call on Monday.  From what you have posted, there should not bee so much of a difference, if any, between the FICO and the Pinnacle scores.  I will ask the questions you suggested.  It looks like either way, I should just wait a few more months and let my score improve a bit more before I even apply, but I certainly want to understand what they are asking for.