topic Re: Why is my Transunion score ALWAYS lower? (not a FAKO) in Understanding FICO® Scoring

Why is my Transunion score ALWAYS lower? (not a FAKO)

madredejames — Mon, 12 Oct 2015 20:20:23 GMT

I'm looking to sell my current home and then apply for another mortgage this coming spring, so I am using the MyFICO service here to monitor my credit so there are no surprises at mortgage time. One trend I have consistently noticed is that my TransUnion score is ALWAYS lower. I have tried looking at the credit reports to figure out why but it is not totally obvjous to me. Has anyone else noticed this pattern, or have one score that is always lower than the other 2?

Re: Why is my Transunion score ALWAYS lower? (not a FAKO)

Anonymous — Mon, 12 Oct 2015 21:06:03 GMT

My is as well. Like 11 points lower for the FICO mortgage score. My FICO 8 score is the other way around Transunion is higher. Accounts are all reported the same except I have one mortage account that is reported on Equifax only.

Re: Why is my Transunion score ALWAYS lower? (not a FAKO)

Anonymous — Mon, 12 Oct 2015 21:10:04 GMT

For me, too. However, I noticed that an old account dropped off that lowered my AAofA. The other two bureaus still have the account.

Re: Why is my Transunion score ALWAYS lower? (not a FAKO)

Anonymous — Mon, 12 Oct 2015 22:32:47 GMT

Interesting ... for me Transunion is consistently over time my highest score. Side by side review of all three credit bureau reports and NO difference. So ... what gives?

Re: Why is my Transunion score ALWAYS lower? (not a FAKO)

Imperfectfuture — Mon, 12 Oct 2015 23:21:50 GMT

How they report data (TU reports more payment history?). The data is not the same for all reports. Number of payments, last payment, cycle update, etc. Exp is my low score.

Re: Why is my Transunion score ALWAYS lower? (not a FAKO)

Anonymous — Tue, 13 Oct 2015 00:17:06 GMT

mperfectfuture - yeah I did not compare the level of detail you brought out. There is certainly the potential for a difference along with the reporting dates not being the same. Thanks!

Re: Why is my Transunion score ALWAYS lower? (not a FAKO)

Revelate — Tue, 13 Oct 2015 02:39:38 GMT

@Spider15 wrote:
mperfectfuture - yeah I did not compare the level of detail you brought out. There is certainly the potential for a difference along with the reporting dates not being the same. Thanks!

Even when they are the same there will be slight differences; EX reports one month ahead on the scoresheet effectively than EQ/TU do as another bit.

Also, sadly, the algorithms are slightly different too; in my case Equifax is lower across the board on all score models even when at one point it was a better file. I've given up trying to figure it out and just accepted it for what it was, other than I suspect Equifax penalizes old negatives more harshly or some anyway out of my tax lien / collection / 30/60 late.

Re: Why is my Transunion score ALWAYS lower? (not a FAKO)

Kidcat — Tue, 13 Oct 2015 03:21:36 GMT

For me it's Experian that is consistently lower and of course being in California it's the one pulled for EVERYTHING lol. I'm wondering if EXP punishes BK more harshly.

Re: Why is my Transunion score ALWAYS lower? (not a FAKO)

CreditDunce — Tue, 13 Oct 2015 03:41:39 GMT

One other thing to note, your mortgage EX scores uses the FICO 98 model (320-844). Equifax and Transunion use FICO 04 models for mortgage scores (309-839 and 334-818). Different FICO models can produce very different scores. It can certainly explain why your EX score is very different than the others. Also, back in the FICO 04 days, the algorithms were customized for each CRA. The more modern FICO 09 and Vantage models are more consistent across the CRA's. That doesn't mean that TU is harder to get a good score on. It just means TU favors/disfavors different things than EQ/EX.

Also, please check to make sure you are monitoring your mortgage scores. MF normally sells FICO 08 scores for monthly monitoring. It is only on the full report provides mortgage scores. FICO 08 is very useful for lenders who use it. But mortgages almost never use FICO 08 scores.

Note: I am using the FICO model terminology I first learned. I believe the terminology is different on the CR's MF sells.

Re: Why is my Transunion score ALWAYS lower? (not a FAKO)

madredejames — Thu, 15 Oct 2015 20:07:32 GMT

Thanks for the info. I currently have the MF product where I get all three CB scores monitored and alerts provided. I have seen when looking at my scores that they refer to scores commonly used in mortgage lending - is that what you mean by monitoring mortgage scores? My scores are reasonably good across the board but better on the ones MF says are mortgage-specific.

Re: Why is my Transunion score ALWAYS lower? (not a FAKO)

ddemari — Fri, 16 Oct 2015 02:51:54 GMT

Until my last late paid charge off from 2008 feel my EQ report, FICO 08 EQ never got above 660. But EQ FICO 05 would fluctuate from 690s to 720s over the course of year. I've always liked my FICO mortgage the scores the best and the cc's I obtained with the lenders who use those scores haha.

Re: Why is my Transunion score ALWAYS lower? (not a FAKO)

CreditDunce — Fri, 16 Oct 2015 17:07:03 GMT

I have never actually used any of MF products, so I am not speaking from experience... only from what I have read here.

When you buy your report, you get all of your scores. However, the monthly monitoring only includes your FICO 08 scores. Your mortgage lender will not use your FICO 08 scores. It is good that your mortgage scores are higher than your FICO 08 scores. Note, that things that improve your FICO 08 score may not help your mortgage scores and the reverse.

Mortgages take your middle of your three mortgage FICO scores.

Re: Why is my Transunion score ALWAYS lower? (not a FAKO)

djdakota — Fri, 16 Oct 2015 21:24:25 GMT

This is really helpful - so when working on your mortgage scores for a loan - what are the best numbers to use that mortgage lenders will look at especially for an FHA loan?

Re: Why is my Transunion score ALWAYS lower? (not a FAKO)

Thomas_Thumb — Fri, 16 Oct 2015 23:54:05 GMT

@djdakota wrote:
This is really helpful - so when working on your mortgage scores for a loan - what are the best numbers to use that mortgage lenders will look at especially for an FHA loan?

The three mortgage scores are:

1. EQ Fico score 5 (Fico 04 scoring model)

2. TU Fico score 4 (Fico 04 scoring model)

3. EX Fico score 2 (Fico 98 scoring model)

They are available through purchase of the MyFICO 3B report. Your EQ Fico score 5 (Beacon 5 score) is also available for purchase (with a credit report) directly from Equifax. It is referred to as your Score Power report + score.

Re: Why is my Transunion score ALWAYS lower? (not a FAKO)

CreditDunce — Fri, 16 Oct 2015 23:56:40 GMT

Here is a sticky with info on the different FICO models:

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/The-many-flavors-of-FICO-Editions-versions-and-variations/td-p/1197617

The short of it is mortgages use EX-98, EQ-04 and TU-04 scores. The loan will be based off your middle score of the three. Anything above 760 has the best rates for FHA (at least when I looked at it back in 2009). IIRC every 20 points below was a slightly higher rate. Until your score was too low to be approved.

DCU provides a free monthly EQ-04 score for members with checking accounts. PSECU provides a EX-98 score if by chance your live in Penn. Apart from that, I don't know of any way to get your mortgage scores unless you either pay MF for a complete score report or apply for a mortgage. Here is an old thread with some ways to obtain free FICO scores. The chart isn't completely accurate, but it helps me keep track of the different FICO models:

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Where-to-obtain-FREE-monthly-FICO-scores/td-p/2555469

Re: Why is my Transunion score ALWAYS lower? (not a FAKO)

jawbrkr — Sat, 17 Oct 2015 16:15:29 GMT

Actually when you sign up for score monitoring, you do get several other fico scores. its just that that fico 8 scores update more regularly. The other fico score versions update once every quarter if i am not mistaken.