Understanding FICO® Scoring

[Booner72]

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Random234 wrote:

I don't think the scores you get are useless.

Are they inflated?  yes.

But you can still get the trend.

I personally use truecredit from transunion, I like it.   It's $14.95/mo.

I get a fresh credit report from all 3 every 30 days, it's pretty accurate.

Example scores, it had me rated as 'C' credit on the lower end of the 'C' scale at 723 transunion, 726 experian and 722 equifax.

I got a credit pull for a home loan and it came back 711, 692, 692, not too far off.

I've been told there are different pulls, that a home lender may get different numbers that a car dealer for example, so there is always some variance...

In summary I like truecredit because it's accurate and cost effective to keep an eye on all 3.   15/mo is sorta a lot, what I've done in the past it stop it (I lose monitoring obviously) for 6 months or so, bear down and keep my nose clean, then reactivate the account, works for me...

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I disagree.  You cannot get the general trend from a fako.  How they calculate their fake score is not how FICO calculates a score.  My Husband's credit karma score was 100 points LOWER than his actual TU score pulled by the mortgage broker.  Eliminate ID Theft has my EX score at 540 (or something like that ) When in fact, my EX score is my highest, almost 700, but Eliminate ID has my TU and EQ scores relatively close to their true fico standing.

[drkaje]

Like anything else: their usefulness or uselessness depend strictly upon what your needs are.

Even if major moves are being made, does anyone really need a score update every 15 minutes?!

Things would be better for consumers if the law were changed, though. You should be able to know exactly what scoring model is being used and passing score... in advance. 

[MzDandylion0527]

I agree, how can you truly track your score or what lenders will see if you are not allowed to see what they see? They show you, after the fact, but just them checking is also a bad mark. I'm no financial advisor but this surely doesnt make sense.

[PolarBearCO]

I'll disagree. They aren't worthless. There are A LOT of lenders out there that use their own FAKO scoring system. If you are trying to get credit from a lender that uses their own scoring then even a FICO is "useless" if you go by standards set in the above replies. There are hundreds of types of scores out there. Knowing your FICO can help you negotiate a better rate with a lender that uses their own system or can help you know when someone may be trying to rip you off. The FICO is only a "standard." It is not the bible of scores. Ultimately the lender uses whatever model they want to use.

[Booner72]

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drkaje wrote:

Like anything else: their usefulness or uselessness depend strictly upon what your needs are.

Even if major moves are being made, does anyone really need a score update every 15 minutes?!  I'd love a score update every 15 minutes.  But I'm addicted.

Things would be better for consumers if the law were changed, though. You should be able to know exactly what scoring model is being used and passing score... in advance. 

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[Booner72]

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PolarBearCO wrote:
I'll disagree. They aren't worthless. There are A LOT of lenders out there that use their own FAKO scoring system. If you are trying to get credit from a lender that uses their own scoring then even a FICO is "useless" if you go by standards set in the above replies. There are hundreds of types of scores out there. Knowing your FICO can help you negotiate a better rate with a lender that uses their own system or can help you know when someone may be trying to rip you off. The FICO is only a "standard." It is not the bible of scores. Ultimately the lender uses whatever model they want to use.

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What would be the bible of scores, then?

[Booner72]

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Dr_Adam wrote:

Yes, there garbage. The only place to order scores from is myfico.com/12  The /12 is important because it gives you the 12 reason codes your score is low or where it's at. Remember to clear your cache and cookies as it will redirect you after the first time you've been there.

The only other way to to write to the individual places and get your scores by mail. They are much more complete that way.

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Hi there - I have no idea how to get the 12 - I put that in my search box and it said I was already logged in.  I was not able to find what you are talking about.  Thanks!

[drkaje]

FICO stores are just an objective measure of how well someone has managed their financial life... Or not.

An 850 score doesn't say anything more about who you are as person than 350. 

[tracee22]

When applying 4 credit, the only "real", useful, meaningful score is the one the lender is going 2 see and, believe it or not, they'll usually tell u where and how they get it if u ask. Just call, e-mail, or write the lender and ask for the following info: (example)

  Q:  What credit bureau/bureaus do u pull a report from?

           A :transunion and equifax (some lenders pull 1..some 2 or all 3)

   Q: Which score do u use? TU's, Eq's, average of the 2?   (if they only pull from one bureau they usually use that bureaus score or ficos)

           A: We average the 2.

   Q:  Bureaus scores or ficos scores?

           A: Bureaus

Try 2 get as much info as u can. If they wont tell u or u need more info...for petes sake google it! Get on forums and ask people! Tweet, blog, post a free ad on craigslist under Wanted: "anyone denied credit by (chase, cap one, whoever the lender is). Just need 2 know what credit bureau they got their info from. Hopefully somebody remembers or held onto their denial letter and wants to b of help."      All U Gotta Do Is Ask!!!

1st u pull whatever reports u found out they're going to use so u can look over them for urself..and dont rely on ones u get from a service like creditkeeper or freecreditreport.com.  Go DIRECTLY 2 THE BUREAUS SITE and PURCHASE IT DIRECTLY FROM THE BUREAU along with any scores u need. If they use a fico then purchase your score(s) from fico.  Do not get any 3 bureau reports from one bureau or use any 2nd or 3rd party sites. They are sometimes incomplete, not up to date, and/or use a different scoring model than the bureaus.

When u figure out the score they're gonna use, contact them again and try 2 get them 2 tell u what their bottom line is. Say you're thinking about applying but dont want your credit pulled if there's no chance ur gonna qualify so you'd appreciate a rundown of their minimum requirements. Keep in mind that employment status, time at job/residence,income and debt 2 income are all taken into consideration so find out all u can. Remember:  "Would you rather inquire hard b4 applyin..or  a hard inquiry 4 a letter denyin?"

[Swill]

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MzDandylion0527 wrote:

I agree, how can you truly track your score or what lenders will see if you are not allowed to see what they see? They show you, after the fact, but just them checking is also a bad mark. I'm no financial advisor but this surely doesnt make sense.

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Hi MzDandylion -

If you have someone, such as your "mortgage guy" pull your score, that is a hard inquiry.  Legally your friend can only pull your credit and/or score if he/she has a legitimate business need.  Telling you what your score is is not a legitmate need, and his pulling that score has caused a hard inquiry against your account, making look like you have applied for a loan.  You can contest the inquiry with the Credit Bureaus if you like, but you run the risk of getting your friend into some serious trouble, and likely won't win.