NFCU Decline

[erinbean28]

My Equifax FICO 8 score is reading at 620 presently, so I decided to bite the bullet last week and applied for the NFCU Flagship Rewards CC. I was instantly declined for the card and have been waiting patiently for the explanation letter in the mail.

I received the letter yesterday and it stated that my credit score was a 511. I was shocked! I came back onto the MyFico site and re-checked - looks like my FICO Score 5 lists my credit as a 511 (it says this score is most commonly used for mortgage lending). I now have two questions:

1. Why such a discrepency between my FICO 8 score and my FICO 5 score?

2. Why would NFCU choose the score used for mortgage lending vs. FICO 8?

Any help is much appreciated!

[Anonymous]

From what I understand the FICO 8 puts less emphasis on medical debt, and smaller debts. If your derogs are smaller and mostly medical that may be the reason for the large difference.

It seems like some smaller institutions like CUs tend to rely on one score for all of their credit decisions - so if they do mortgages its probably going to be the Fico 5 (TU) or FICO 4 (EX) or FICO 2 (EQ). Probably costs them less money that way.

[erinbean28]

I only have one derog at this time, it is an old collections account from TimeWarner Cable. I am working on getting that ding removed, but the collections company is refusing a PFD. I am going to try another route.

Thank you for your imput.

[Anonymous]

What current accounts do you have?