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Question on Score Differences

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Anonymous
Not applicable

Question on Score Differences

I know different creditors use different scoring models, but I"ve run into some pretty big discrepencies lately and was wondering if anyone could help me understand the reasons for the differences a little better.

 

Credit karma - transunion 600, equifax 603

3 bureau report from equifax - Transunion 569, Equifax 580, experian 558

Capital one - 638

Rejection letter from Discover card app- 681

 

Just curious if anyone could help me understand which models each use, why the capital one + discover would be so much higher, and which type of score / score model a landlord would most likely look at in deciding credit worthiness for a lease.

 

Appreciate any help, thanks.

 

Message 1 of 5
4 REPLIES 4
Anonymous
Not applicable

Re: Question on Score Differences

There a about 49+ scoring models, and I think financial institutions might keep the model they use confidentially. There is no absolute credit score that exists, but IMO myFICO is the only true FICO score. Again, not many lenders might use FICO scoring and what you see is not what lenders use. They may have some algorithms written to evaluate risk. As for landlords, mine used a BG/Credit verification agency that pulled my TU and at that time my TU score was 580, but luckily my fiance's score was 818. So, I guess we got the apartment.. I don't know if I answered your question... Smiley Indifferent

Message 2 of 5
StartingOver10
Moderator Emerita

Re: Question on Score Differences

I'm a Realtor and in our area we use national tenant screening companies that check credit and backgrounds. The score that is used is the mortgage score (TU FICO Classic 04).  That does not mean that all tenant screening companies use this score, but many screening companies do use this score. You can see your TU FICO Classic 04 score here if you get the 1B report showing various FICO scores (mortgage, auto enhanced, FICO 08 and bankcard scores) http://www.myfico.com/Products/FICOOne/ or you might want to see the 3B report.

 

Those scores from CK are not scores that lenders use -nor screening co's.  They are referred to as educational scores (or FAKO's). 

Even each of the 3 CRAs have many 'edcuational scores' they sell that are not FICOs and are not the scores that lenders uses (or screening co's). These scores generate revenue for the CRAs and that is why they sell them.  Read the disclaimers on each site before you buy. They can not call it FICO unless it is a FICO score. And even then, you need to know which FICO version you are purchasing.

 

Read the stickies here to get a better understanding of scores:  http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/bd-p/ficoscoring

Message 3 of 5
Anonymous
Not applicable

Re: Question on Score Differences

It varies from area to area, and from one rental company to another, BUT - in my area the management companies care much less about the actual score than they do about the individual derogs on the reports. It was explained to me that they would not approve a renter if they had any UNPAID collections for 'property related' items. This did NOT include forclosures/mortgages, but it did included any sort of utilities, unpaid rents, charges resulting from damages, etc.

 

I would simply call the management of any place I was considering and ask them what their credit report criteria are.

Message 4 of 5
Anonymous
Not applicable

Re: Question on Score Differences

Thank you all, appreciate the information. 

Message 5 of 5
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