New Visitor
Benjamin12345
Posts: 1
Registered: ‎09-12-2012
Re: Lenders see different scores than consumers do

But... why? Why are they different? What's the point of showing the consumer one score and the lender another? Would someone be so kind as to explain this to me? Thanks in advance for your help. 

 

Ben

New Member
backbeatcb1977
Posts: 1
Registered: ‎05-12-2012
Re: Lenders see different scores than consumers do

I totally hear you! Same thing happened to me. I was outraged that my scores I had been paying for were completely different. (that was from a "service" called Totalcreditreoprt.com - I think it was Equifax) It's just another way for the credit bureaus to screw us. They sell us these BS scores and "alerts" and "watches" and it all turns out to be bull. And there are some that say we don't NEED regulation on this bull**bleep**????  **bleep**????  These bastards are just getting rich off of decieving practices. They are thieves plain and simple.

 

Now, after reading some of the posts here. I'm wondering if I'm getting ripped off yet again?  I took Suzie Orman's "advice" and signed up for MYFICO thinking that, at least here, I might get the true picture. And now I'm reading that THESE may not be correct either?????  What's the freaking truth???? Anybody?

 

Also, can anybody tell me if I should close unused credit accounts?  SOME say that I should leave them open as having more accounts in good standing will help my score. HOWEVER, some other's say that my score is hurt by them because lenders see that I have access to alot of credit and THAT'S risky?  Again, **bleep** is the truth?  Does anybody really know?  OR, is this whole SCORE thing just a way for lenders to justify charging some higher interest reates than other??  I tend to think THAT'S THE TRUTH!

 

What do you all think?

Member
kimfl
Posts: 18
Registered: ‎08-07-2012
Re: Lenders see different scores than consumers do

I think it's a scam to get lenders to charge us more interest.

 

Since I last posted here, I have gotten a credit score of 636 from two different sources. Not sure where Wells Fargo is coming up with the 590, but I personally feel that they are using a lower score to either deny people credit, or charge them a higher interest rate. We really DO need regulation regarding how our scores are calculated, and what we get to see vs. what a lender sees. They should be one and the same!

Valued Contributor
GregB
Posts: 1,670
Registered: ‎05-24-2007
Re: Lenders see different scores than consumers do
[ Edited ]

These conspiracy theories are mostly over the top. People want simple answers to questions with complex answers.

 

The lenders want to choose which report and score best fits their needs.This is why there are many different scoring models avaiable from each CRA. Transunion alone offers 51. More than 30 of those are Credit Acquisition Scores, designed for qualifying new loans, renewing loans, or limit changes.

 

The main reasoning driving a change in reports and scores is so a lender can qualify more "good" customers without qualifying more "bad" customers. Businesses want your business. If you deserve a loan, they don't want to send you away. If they do, a competitor that is doing a better job qualifying customers will get that business. They also don't want to charge you more interest because you are more likely to go to a competitor.

 

There certainly are some loan resellers, which can get you a loan at one rate and charge you more if they feel they can get away with it. It is the responsibility of consumers to get rate quotes from a few lenders to ensure that you are getting a deal that makes you happy. For example, you would want to check with your bank before you go to a car dealer to buy a car.

Valued Contributor
p-
Posts: 2,633
Registered: ‎06-05-2008
Re: Lenders see different scores than consumers do

GregB wrote:

These conspiracy theories are mostly over the top. People want simple answers to questions with complex answers.

 

The lenders want to choose which report and score best fits their needs.This is why there are many different scoring models avaiable from each CRA. Transunion alone offers 51. More than 30 of those are Credit Acquisition Scores, designed for qualifying new loans, renewing loans, or limit changes.

 

The main reasoning driving a change in reports and scores is so a lender can qualify more "good" customers without qualifying more "bad" customers. Businesses want your business. If you deserve a loan, they don't want to send you away. If they do, a competitor that is doing a better job qualifying customers will get that business. They also don't want to charge you more interest because you are more likely to go to a competitor.

 

There certainly are some loan resellers, which can get you a loan at one rate and charge you more if they feel they can get away with it. It is the responsibility of consumers to get rate quotes from a few lenders to ensure that you are getting a deal that makes you happy. For example, you would want to check with your bank before you go to a car dealer to buy a car.


+1

  8-12-14: FICO EXP: 797 - EQU: 734 - TRAN: 739 - AVG: 757 - +207 points from JUN 2008 - MY CREDIT JOURNAL

New Member
rebuildernewbie
Posts: 8
Registered: ‎01-04-2012
Re: Lenders see different scores than consumers do

When I bought my car, my credit score pulled off myFICO was only about 577.  However, when the dealership pulled my score it came in at 601 - so the differences between what's on here and what a lender may pull are not always bad.  Instead of having double digit interest I got a much better rate. :smileyhappy:

 

I agree that it is a rip-off that we don't have the option to purchase specialized scores - especially when applying for credit and then being turned down can hurt us.  In the meantime, I suggest we all work on the basics - pay on time, keep a good mix of credit and keep a low utilization rate to make sure we can get the best rates possible.


Starting Score: 577
Current Score: 667
Goal Score: 750


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New Member
jcmoore0083
Posts: 2
Registered: ‎04-27-2012
Re: Lenders see different scores than consumers do

I went to a bank today, confident that the transunion score Myfico.com gave me was accurate, (713). Had to sit infront of a loan officer and have her tell me my score is actually 677, and I can not be preapproved for a mortgage loan because the minimum is 680. I'm beyond irritated, and curious why a product offered by this site is incorrect. What did I pay for? False hope? Why did this happen?

Moderator Emeritus
llecs
Posts: 32,881
Registered: ‎08-04-2007
Re: Lenders see different scores than consumers do

jcmoore0083 wrote:

I went to a bank today, confident that the transunion score Myfico.com gave me was accurate, (713). Had to sit infront of a loan officer and have her tell me my score is actually 677, and I can not be preapproved for a mortgage loan because the minimum is 680. I'm beyond irritated, and curious why a product offered by this site is incorrect. What did I pay for? False hope? Why did this happen?


Welcome! Sorry about the denial. Do you have the opportunity to go with an FHA-based mortgage? The requirements aren't as strict and the interest is just as low. On scores alone, you're qualified.

 

It's mentioned over and over in here with regards to mortgage loans that most of the lenders out there use a newer version of TU FICO than what is sold in here. This newer version is nicknamed TU04, whereas myFICO offers an older version of TU98. There are some mortgage lenders that use the exact same TU FICO as found on here, but finding one wouldn't be that easy. For some, their TU98 is higher and it is a rude surprise when they app and see a lower score. That happened ot me, though it was only a 10 pt difference. DW's was opposite, the TU from the mortgage lender was 30 points higher. Nice surprise.

 

If stuck with this lender and their product I would focus on TU. Three points is very easy to recoup. In fact, I'm surprised they didn't work with you. All you'd have to do is pay down CC utilization just by a little bit and they could have done a rescore to 680. It could be done that day via rapid rescore. Since lenders pull all 3 FICOs, and if TU was critical for you, then I'd focus on your lowest score too. Two of your three were under the 680. Again, there are plenty of lenders out there who will work with you whereby 680 isn't a requirement.

New Member
jcmoore0083
Posts: 2
Registered: ‎04-27-2012
Re: Lenders see different scores than consumers do

Thank you for the information. I apologize for lacking the patience to read through all of the posts on this message board. I was a little surprised myself that she wouldn't work with us, but I didn't know about rapid score. We're going to hear from another lender on Friday, and hopefully they'll check other scores that are higher already so if it drops by 30 points, I'll still be at 680. Just a really **bleep** day. Sorry. Thanks again for your assistance.

Respectfully.

 

New Visitor
kasage00
Posts: 1
Registered: ‎10-19-2012
Re: Lenders see different scores than consumers do

I have a 770 EQ score but my TU and EX are around 600. I disputed  collection account on EX and got it deleted but it did not change my score any. I got all negative items offEQ but not off TU or EX (which is why my EQ is so much higher.) on TU and EX I have some negative items such as charged off credit cards that are about 3 years old. My only active account is my current mortgage and my student loan. I was never late with either one. I am seeking a HARP loan (I meet all the guidelines). Would my clean EQ score override the other two bad scores?