Re: Credit Card debt AND Line of Credit debt...Wil
[ Edited ]
l my score ever improve?
01-17-2013 03:15 PM - edited 01-17-2013 03:17 PM
A few more than one. If you include the three CRAs, there are well over 100 although most of the credit acquisition applications use one of about a dozen for each CRA. EX is fairly tight with their info. TU is more clear and they provide 51 different credit scores to commercial customers plus a couple to consumers. About 30 of the 51 are credit acquisition scores designed for new credit. Examples of non-credit acquisition scores are some of them are for insurance applications. Some are designed to run a score against existing customers to determine if the lender wants to keep the customer. Some are designed for a CA to determine if they want to buy a person's delinquest account.
If you mean "banks" for a typical mortgage, then it is easy. They will use the FICO 04 Classic versions from each CRA:
EQ Beacon v5.0 as sold here.
TU FICO Classic 04, one version later than the TU 98 Classic sold here.
EX FICO II, which is not available to consumers unless you belong to a couple CUs that provide it.
This is for any mortgage that is FHA, VA, USDA, guaranteed by Fannie, Freddie, etc. Also any that will be resold. If it is a Jumbo, Private, or a traditional bank that retains the mortgage then they can use something different. As is typical, we have been cheated by a bunch of new legislation designed to bring "fairness" to the system by depriving the lenders of using better scoring models so that everything is "equal". If the bank is loaning its own money, it will want to use a better system.
A bank that taking a app for a CC or Auto will likely use an Industry Enhanced version of one of the above. A fair number of those will use scores based on FICO 8. CUs and some banks use the Classic version althought FICO 8 no longer uses that name for the generic version. Many banks will use Industry Enhanced Versions. CC lenders seem to commonly use CC Industry Versions. The Industry versions are designed to qualify more people for just those type of loans. Many lenders use their own score, which is usually one of the standard ones with an additional scorecard which modifies the standard according to additional parameters.