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Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007

Re: Lenders see different scores than consumers do

Your lender didn't give you three scores of 675 each, right? What were the other two scores?

 

As mentioned over and over, TransUnion won't likely match for a mortgage pull because of the versions used, though there are still some lenders out there that use it. Equifax would match, though. Do you have your credit report from your lender handy?

Valued Contributor
GregB
Posts: 1,670
Registered: ‎05-24-2007

Re: Lenders see different scores than consumers do


okp wrote:

Yes, I did mean Equifax (another sort of confusing issue, that two of the three credit agencies start with "e"....:smileyhappy:

 

I literally went down to the bank immediately after paying for and printing the scores. The lender, when I pointed out that I had just pulled

the scores I was showing him, said, "Nah, lenders get differnt information and scores than you as a consumer do. They're not the same." He was completely

dismissive of the scores I pulled through myFICO, as if they were utterly bogus.

 

Thanks for your response.


That lender just showed he is ignorant, which is all too common. There are many different lender scores and many different consumer scores. Some of them are the same. Most are different. It is hard to find a good mortgage loan provider but if that one is that bad, you might want to look for a better one.

 

A mortgage lender is most likely to pull a very specific score from each CRA. You can do a search here and get lots of info on that as well as the reasons that mortgages are so consistent. myFICO is rare in that they are giving you the exact EQ score that is used. They also give you a similar score from TU, although everyone wishes they would give you the exact TU score. They used to give you the exact EX score until EX made it unavailable.

 

Based on the fact that most mortgage lenders qualify you based upon your middle score and you know EQ exactly and have a rough idea of TU, that means EX is likely to be much lower than the other two. A good place to start is to look at your report from EX, ignoring their useless score, and work on getting better information on that report.

okp
New Member
okp
Posts: 4
Registered: ‎04-02-2012

Re: Lenders see different scores than consumers do

Thank you, Greg, for your several responses. It has helped assuage my frustration. The lender that I spoke of is with a Texas bank, which, one would think, would

fit the "normal lender" description. 

 

I always pull scores from the myFICO website. Suze Orman, among others, has long advised consumers to pull only a true FICO.

 

Anyway, I have asked the lender to see what he pulled. He was secretive and somewhat condescending about the consumer vs. lender credit profile. I will be surprised if he is willing to turn over the score profile he obtained.

 

I currently have only have 5% to put down on a $350K (ish) home, obviouslymore on

a lesser home (trying to stay in a more expensive neighborhood with outstanding schools). But I earn over $110K a year. My AGI on the 2011 taxes was over $140K, with $10K child support on top of that. When he pulled the 675 score, supposedly, he said the bank simply could not fund me with that kind of score...My credit scores in the past year have been over 750, but recently dropped because of

one high balance on a MasterCard. I pointed out to him that I have a second MC and a VISA, but both have been paid off for 6 months. As a single parent, I like using

only the one card. The high balance on the credit card is due to the fact that as a single parent, I just paid all college expenses for a new semester for one of my kids.  I like the convenience of using only one card, but knew that, unfortunately, the one card DRIVES my credit score. I do know that it's wiser to have each of 3 cards with under 30% balance, but wanted to apply for the loan while I have a window of opportunity (all of my actual work is done out of state, so I am not home much of the year).

 

Thanks for taking the time to share your knowledge.

 

 

 

 

Established Member
NorCal1
Posts: 20
Registered: ‎02-15-2011

Re: Lenders see different scores than consumers do

[ Edited ]

This is spot on! (Moderator comments in prevous post)

 

I pulled the EQ FICO at My Fico yesterday and it was 711.  I went to my mortgage broker yesterday afternoon and the EQ FICO he pulled was exactly 711.

 

The other two scores he pulled, were not the same as I have been seeing; TU was somewhat lower, and EX amazingly, was much higher.

Member
kimfl
Posts: 18
Registered: ‎08-07-2012

Re: Lenders see different scores than consumers do

I am experiencing the same frustration as the OP. I went to a Neighborhood Lift function, hoping to get some down payment assistance and apply for a mortgage. I pulled my score through myfico.com the day before, and it was 636. When I spoke to a mortgage broker, she told me my score was 590! This was the difference between easily qualifying for a loan and having some work to do. She also gave me the same BS about "what we pull is different than what you pull", but when she showed me what was on her report (she used a company called Rescredit), it had everything I saw on my credit report, except for one big error-a tax lien that I had paid off 6 years ago did not reflect that. This is in the process of being corrected, but the fact is, I should be able to get exactly the same score as a lender does, and to not do so is unfair and unethical. It's like not being able to access your medical records. This whole system is flawed, and we need legislation to correct it. Being debt-free is not rewarded; to get a high credit score, you need loads of credit that you make on-time payments to. I have a small amount of credit that I make on-time payments to, and have been priding myelf on being frugal and careful after some really bad problems 4- 6 years ago (business failure, spouse's unemployment, and all that comes with it). It angers me to no end and I am going to do my damndest to get this changed. 

 

Member
kimfl
Posts: 18
Registered: ‎08-07-2012

Re: Lenders see different scores than consumers do

Correction, this was Relscredit, and it was with Wells Fargo. After a little bit of research, it appears that Wells Fargo uses their own credit scoring system and not FICO. Seems like a scam to pull lower scores and charge people more money. Please correct me if I'm wrong on this.

Valued Contributor
GregB
Posts: 1,670
Registered: ‎05-24-2007

Re: Lenders see different scores than consumers do

Wells Fargo may use their own score for a special program or to get you prequalified -  but any mortgage that will be resold or is FHA, VA, PMI, FNMA, FMAC, etc. will require FICO 04 based Classic FICOs from the three CRAs. The one from EQ will match the EQ FICO sold here.

Member
kimfl
Posts: 18
Registered: ‎08-07-2012

Re: Lenders see different scores than consumers do

Does this mean that if I go to another lender (which I am doing), they may get that same 636 score that I got at myfico..com? I sure hope so.

Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007

Re: Lenders see different scores than consumers do


kimfl wrote:

Does this mean that if I go to another lender (which I am doing), they may get that same 636 score that I got at myfico..com? I sure hope so.


The same EQ FICO as on here is used by probably 99% of the lenders out there. The TU FICO may or may not match. YMMV on the lender. Most lenders use a newer version as on here. The EX FICO that was offered on here once upon a time is the same that 99% use, but too bad we can't pull that anymore. Once in a blue moon you see a mention saying their lender used a special score that weighs a lack of credit history. Some lack a history of opened accounts and that can cause FICO to return a no-score. In cases like that, some lenders use a special score to factor in alternative means like utilities and so on. 

New Visitor
beckolson
Posts: 1
Registered: ‎08-08-2012

Re: Lenders see different scores than consumers do

Ok, I pulled my credit score today and it was through experian. It was a 626, I have been waiting to get approved for a loan so I figured I would inquire to see if I can get financing. The lender told me my score was a 502!!! 124 points different that is crazy. I asked why it was so different then when I pulled it a couple hours earlier of coarse he said the same thing about lenders seeing a different score then consumers. He said he had never seen this big of a difference before. Does anyone know why my score was 124 points different with the lender???? I understand I have work to do on my credit. I will be coming into some money in a few day and am planning on paying off the negative things on my credit. Also my paying on some of my credit cards to get the balance only around 30%.  I am hoping by doing this that in 6 months my score will be high enough to apply for a mortgage. I just don't know how I will be able to tell since the lender is seeing 124 points differet then what I saw.


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