One very big difference that happened to me was when my oldest account turned 4 y. Out of the blue my EQ 04 dropped to 690 which was lower than when I had a CA and PR but on a completely clean report with util of 10%. TU 08 remained unchanged at 770 ish.
Turned out the killer was that all of my revolver cards were reporting a small balance. When I zeroed all of them except one my score recovered to around 760. TU FICO 08 did not show much of a drop at all and the urrent EQ 08 seems to also count small balances very little. So you might try getting all your cards but one down to zero balance reporting and get the util. on the last card as low as possible to help FICO 04 (mortgage) pulls.
@nycfico wrote:Okay, so this is pretty disheartening to read. What is the point of subscribing to myFico if the scores aren't reality for getting a mortgage? That's what I, and I presume quite a few other people on here, are after. So, why are we paying money every month to get scores that could be wildly off?
Well, probably the most common credit types people apply for are credit cards. SW indicated they were changing because creditors had shifted from FICO 04 to FICO 08 for most purposes. Mortgage issuers are slower because they have to validate changes and that takes time. In general I've found, outside of a re-bucketting anomoly, that FICO 08 is quite close to FICO 04. Usually within 10 points so long as I don't have more than 2 CCs with a balance. The fact is though that not only are there signficant changes between models but within a model their can be variations and their are really a large number of different flavors of FICOs in use. The CFPB study did find that there was an extremely high (99%) correlation between FICO flavors within a model but didn't explore the differences between major model upgrades. I can't imagine the chaos were FICO to offer all of their variopus scores to consumers. How would you even know what to pick with the CC issuers? Even mortgage underwriters aren't always using FICO 04 as they dabble in FICO 08 and possibly VantageScore 3.0.
Creidt scores are always in a state of some flux as the score elves tweek this or that in seach of more predictive numbers.
704 is pretty low of a score to go to closing with, IMO.
So to see if I get this straight. Paying off your obligations is money you are "out" of? Years of financial neglects can't be solved with a $14.95 monthly subscription to a website.
I'm sorry you didn't qualify for a mortgage. Personally, I think you bring up a good point about the site. We are told to be "supportive" of other members to the point, IMO, that is dangerous and not very helpful. If you made a post and explained your situation asking other members what they thought about your chances of qualifying, we would be admonished if we aren't "supportive". But sometimes the truth is the best thing, even when it's not what we want to hear.
@pumpkin1dog wrote:Began using this site because everyone said "its the score lenders use" and it was supposed to be the most accurate place to get your real actual fico score, especially for equifax, I read post after post stating the the eq score here is the exact score my lender used for my mortgage, based on this I assumed my score was 704, after all, thats what myfico said my equifax score was, I thought I had the credit score part of the mortgage qualification process beat, I moved on to reducing my debt to income ratio, I paid off a auto loan to the tune of 17 thousand bucks, a big chunk part of which was reserved for a down payment on a home but in order to quaify i had to get the dti down. That being done I was in very good shape to get a mortgage, or so I thought. turns out "the score lenders use" provided here was anything but . My actual score was 595! a full 109 points different:
Now I'm out 17k (I know I'm also free of that debt) but I didn't want to pay that all at once.and still don't qualify for a mortgage I have followed recomendations on raising my score by paying down cards, eliminating negatives on my report and all that and a total of 31000 bucks has got me exactly a ten point jump, only 3100 a point. I give up, my dream of owning a home will forever be just a dream I guess. Thanks for the fraudulent information myfico.com. I'll be sure to let everyone I know hear about how sorry this site is.
@nycfico wrote:
@cashnocredit wrote:
@nycfico wrote:Okay, so this is pretty disheartening to read. What is the point of subscribing to myFico if the scores aren't reality for getting a mortgage? That's what I, and I presume quite a few other people on here, are after. So, why are we paying money every month to get scores that could be wildly off?
Well, probably the most common credit types people apply for are credit cards. SW indicated they were changing because creditors had shifted from FICO 04 to FICO 08 for most purposes. Mortgage issuers are slower because they have to validate changes and that takes time. In general I've found, outside of a re-bucketting anomoly, that FICO 08 is quite close to FICO 04. Usually within 10 points so long as I don't have more than 2 CCs with a balance. The fact is though that not only are there signficant changes between models but within a model their can be variations and their are really a large number of different flavors of FICOs in use. The CFPB study did find that there was an extremely high (99%) correlation between FICO flavors within a model but didn't explore the differences between major model upgrades. I can't imagine the chaos were FICO to offer all of their variopus scores to consumers. How would you even know what to pick with the CC issuers? Even mortgage underwriters aren't always using FICO 04 as they dabble in FICO 08 and possibly VantageScore 3.0.
Creidt scores are always in a state of some flux as the score elves tweek this or that in seach of more predictive numbers.
Oh...so eventually the mortgage lenders will come over the Fico 08?
They will. Eventually. The reason mortgage lenders are slower is that their time scope is longer. FICO is predictive for 24 months, not 30 years. A newer score may be more predictive for the 24 month period but they have to validate that it will be more predictive over a longer term before switching. Also mortgage underwriters get a very complete picture of the financial position of an applicant and this is factored into decisioning in complex ways. They just can't change it as rapidly as creditors can for credit cards, car loans, or other shorter term lending.
@pumpkin1dog wrote:Just to clarify exactly where I am at. I did have 14 derogatories on my report. I'm being general here there were a couple more on one a couple less on another but 14 is about average. I also had approximately 12k in credit card which put my utilization ratio quite high, I had 4 open installment loans one of which was 30 days late twice in the past six months (due to divorce proceedings). My eq score was according to my fico on june 6 of this year 541. I came into a large sum of money (80k) and was gonna pay off some things and reserve about 50k for a 185k home. A pretty substantial down payment and me without knowing how mortgages work nowadays was completely shocked when I called a mortgage company to learn that a large (even a very large) down payment means nothing without a good credit score so I went to work, following the advice of a credit expert from equifax, I paid off all credit cards with the exception of one so the 12k went to 2k, I paid off the ex wife's car,four days ago, which was deliquent but now is paid in full. contacted all the creditors that showed a collection with and settled up with them, getting a letter from each that they would remove the negative marks on my reports which they did. there went another 1k, not a large amount and most of the colections were very small medical bills that I didn't even know I had. fast forward to today, I have two bad marks on my current report, the ex-wifes car which will disappear soon as I just paid it off, and the number of inquies. My eq score shown on myfico is 705. in the real world its a 595, when I first began this whole process with all the negatives listed above it was 585, both of those numbers were according to quicken, I just dont understand how on my fico my starting score was 541, eq it was 585, now myfico 705, eq,595. I don't know ;what my starting score was on tu but it is 726 myfico today and 685 according to quicken, I started with a myfico experian score of 539, now myfico says 726, real world is 594, Im really starting to believe that there should be some type of legislation put in place where comsumers can get a real deal 100 percent accurate number of what your score is for all types of loans, that way people like me won't be fooled into thinking they are doing alright but in reality they're just wasting time and money..
There is no such thing as a 100% accurate credit score. They are complex statistically derived estimates. You can't legislate math. That said, if you only have one derogatory that wiill be removed soon your scores should be well above 700 as soon as that happens. It's a known that EQ 08 counts older single derogatories much less harsh than EQ 04.
Sorry this happened to you OP. Nothing can be more frustrating and embarrassing than sitting down with an LO thinking you have your ducks in a row only to find out the assumptions you were working off were totally incorrect.
That being said, I would shop around a little bit with some reputable brokers and see what they can do for you. You are coming with >20% down which dramatically decreases the risk to the lender. Even with those 04 scores you might be able to find decent terms with someone else.
It goes to show credit really is a YEMV game. Interesting, my TU 98 scores (myfico) and TU 08 scores (Barclays) are EXACTLY the same.
That being said, I would shop around a little bit with some reputable brokers and see what they can do for you. You are coming with >20% down which dramatically decreases the risk to the lender. Even with those 04 scores you might be able to find decent terms with someone else.
It goes to show credit really is a YEMV game. Interesting, my TU 98 scores (myfico) and TU 08 scores (Barclays) are EXACTLY the same.
