Re: Lenders see different scores than consumers do[ Edited ]
09-13-2012 01:57 PM - edited 09-13-2012 01:58 PM
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.