@polskboy wrote:yes they informed me of that but if lander pull there score that good is fico???
Each lender is unique and chooses which model (score) to use all on their own. Vast majority of lenders (by some accounts higher than 90%) use a form of a FICO score model. There are lenders who have developed their very own proprietary score they use to determine their risk.
Basically you have to think of FICO as one of the models out there which is used by an overwhelming majority of lenders. You have a 90% chance (if those numbers are accurate) that your lender will use a FICO model over any other model or score.
hope that helps
@virgo wrote:Okay, now I'm confused. If Equifax doesn't have a FICO, what does Scorewatch get from Equifax. FICO?
I think you may be overthinking this whole concept. FICO model was developed by Fair Isaac Corporation. It is an algorithmic formula which takes a snapshot of your credit report (be it from Equifax, Transunion or Experian) and spits out a number which then is used to determine your risk - known as a FICO score.
Now, Equifax has developed their own model which is NOT the same as the FICO model. Why? Well for starters, they wouldn't have to pay a licensing fee for using the FICO model. and Second reason would be that if their model proves to be a good predictor of risk, they can license it to lenders as well - the same as FICO does.
If customers request a FICO score via Equifax directly, they will provide it to them. Why? Well, the consumer gets what the consumer wants. If equifax does not provide it, the consumer can come here (to myFico) and buy it - why not sell it to them while you have them at your site and possibly/probably get a comission out of it?
To sum it up, FICO is a model which ANY company can use. But when they use it, they have to pay a licensing fee to Fair Isaac Corporation (at least I would assume so). When they develop their own, then they won't have to pay that fee. Making sense yet?
To answer your question aboud Scorewatch - ScoreWatch is a product (which monitors your Equifax Credit Report and when it detects significant changes it re-calculates your score) which was developed as a partnership between Fair Isaac Corporation Equifax whereas Equifax supplies the report while Fair Isaac Corporation provides the formulat to translate that report into a numerical value (i.e. FICO Score).
Is it making any more sense or did I make it clear as mud?
Hope it is not the latter.