topic Re: MyFico vs Lender Score - Why the difference?? in Understanding FICO® Scoring

MyFico vs Lender Score - Why the difference??

ABD — Mon, 17 Nov 2014 01:21:03 GMT

I subscribe to MyFico and scores are TU 590, EX 628, EQ 597. Mortgage lender pulled 'Equifax Mortgage Services' and the scores are TU 674, EX 647, EQ 564.

Why even pay a monthly subscription, scores not accurate?

Re: MyFico vs Lender Score - Why the difference??

s_haliz — Mon, 17 Nov 2014 02:59:22 GMT

Mortgage Lenders uses 04 model of FICO. Whereas CC Lenders and myFICO subscription uses 08 model of FICO.

Re: MyFico vs Lender Score - Why the difference??

Anonymous — Tue, 18 Nov 2014 14:56:35 GMT

Yes, my wife and I have been rebuilding our credit for a year and seen our FICO score go up. But when we went shopping for a bank loan and they pulled credit reports from the 3 biggest bureaus both our scores were 50 points lower. Here we thought we ready to purchase a home but the bank does not based on their score. When I phone FICO they said it's because FICO uses the "newest" version. Well, that's just wrong. What good is FICO if the three main bureaus are using an older version. I think a)FICO needs better version control on its sales; b)they need to warn people that there are significant difference between FICO's scores and the "real world." It's very misleading to sell us the newest version score when most everyone else is using an older version. it's really kind of a fraud.

Re: MyFico vs Lender Score - Why the difference??

Anonymous — Tue, 18 Nov 2014 22:43:59 GMT

I can see how frustrating it is. I think FICO may have reduced the effect of late payments etc., in the new system which boosted everyone's score. The banks may see that as mispricing of risk and may want to continue to use the data to caclculate scores by the old method.

Re: MyFico vs Lender Score - Why the difference??

Anonymous — Wed, 19 Nov 2014 00:41:27 GMT

Do you know what model your lender used ?

Re: MyFico vs Lender Score - Why the difference??

ABD — Wed, 19 Nov 2014 02:45:08 GMT

If MyFico uses the new model 08 that reduces the effect of lates, then why were the scores so much lower that the EQ Mortgage Svcs that uses a 04 model.

I really think MyFico is a scam and I have to subscribe for 3 months before canceling. #fraud

Re: MyFico vs Lender Score - Why the difference??

Anonymous — Wed, 19 Nov 2014 12:31:38 GMT

Scam? You get exactly what you agreed to pay for. There are thousands of threads here that tell you explicitly its not used in mortgages. Do research before you make a purchase to make sure the product is for you. These are real fico 08 scores that are helpful to ALOT of people.

08 uses different algorithms. So obviously something on this persons reports 08 doesn't like.

Re: MyFico vs Lender Score - Why the difference??

Anonymous — Wed, 19 Nov 2014 16:13:37 GMT

Similar situation for me

Lender EQ (Beacon v5) = 786 vs Myfico EQ 829 (Myfico is 43 points higher)

Lender TU (Classic 04) = 756 vs Myfico TU 823 (Myfico is 67 points higher)

Lender EX (Fair Issac v2) = 791 vs Myfico EX 817 (Myfico is 26 points higher)

Clean file, zero lates or derogs, 11 years AAoA, less than 9% utilization, mix of credit and oldest revolving account is 24 years aged

I expect some differences but 43 and 67 seem excessive.

The TU score is especially frustrating and I cannot figure out why the large delta between them.

Seems like the lender scores would be higher.

Re: MyFico vs Lender Score - Why the difference??

Anonymous — Thu, 20 Nov 2014 01:52:45 GMT

You have to admit that the three month min is a bit much and once you sign up and find out that it really doesn't work that well. SO IMO IT'S NOT WORTH THE MONEY

Re: MyFico vs Lender Score - Why the difference??

HiLine — Thu, 20 Nov 2014 02:08:23 GMT

@Anonymous wrote:
You have to admit that the three month min is a bit much and once you sign up and find out that it really doesn't work that well. SO IMO IT'S NOT WORTH THE MONEY

Paying $60 for what you don't need is a bit much. But did you know about the 3-month requirement coming in?

Re: MyFico vs Lender Score - Why the difference??

Anonymous — Thu, 20 Nov 2014 03:06:05 GMT

Yes my fault for not reading up on the other posts saying that it does'nt help pepple looking to but a house and if i would have known that i would have never have signed up they should warn people looking to buy a house not waste the time and money. If you are looking for a credit card then by all means sign up.

Re: MyFico vs Lender Score - Why the difference??

HiLine — Thu, 20 Nov 2014 03:08:42 GMT

@Anonymous wrote:
Yes my fault for not reading up on the other posts saying that it does'nt help pepple looking to but a house and if i would have known that i would have never have signed up they should warn people looking to buy a house not waste the time and money. If you are looking for a credit card then by all means sign up.

I don't blame you. Most people don't even know there are multiple FICO scores out there ...

Re: MyFico vs Lender Score - Why the difference??

iv — Fri, 21 Nov 2014 03:28:04 GMT

@Anonymous wrote:
Scam? You get exactly what you agreed to pay for. There are thousands of threads here that tell you explicitly its not used in mortgages. Do research before you make a purchase to make sure the product is for you.

Yeah... anyone spending time in the forums knows this.

...but....

Anyone "doing their research" on the myFICO site? They see these pages:

http://www.myfico.com/loancenter/mortgage/step1/getthescores.aspx

http://www.myfico.com/helpcenter/mortgages/buying_a_home.aspx

Which include the claim "Get the Score Lenders Use to Evaluate Your Home Mortgage Loan".

(That page is also currently the second Google hit for a search on fico mortgage)

So... potential purchasers need to know to come here to the forums, to be informed that the myFICO marketing claims are, at best, 6+ months out-of-date (the EQ04 to EQ8 change), and at worst, just knowingly false?

Really?

Because that is NOT getting what you paid for, not if you believed the "Get the Score Lenders Use to Evaluate Your Home Mortgage Loan" claim.

Re: MyFico vs Lender Score - Why the difference??

Anonymous — Sat, 22 Nov 2014 00:23:25 GMT

WOW now that upsets me even more how can they say one Thing then give you another what a RIP OFF .

Re: MyFico vs Lender Score - Why the difference??

ABD — Sat, 22 Nov 2014 00:35:28 GMT

Right, I thought I was getting the score that mortgage lenders would have. Today I got scores from a bank that pulled my scores to preapprove me and they were:

676 EX

674 TU

564 EQ

But low and behold I just checked myFico and they are:

628 EX

590 TU

597 EQ

These were the same scores from 6 months ago....they don't update regularly. I got suckered in...now I'm stuck for 3 months!

MYFICO IS A JOKE!

Re: MyFico vs Lender Score - Why the difference??

HiLine — Sat, 22 Nov 2014 01:26:48 GMT

@iv wrote:
@Anonymous wrote:
Scam? You get exactly what you agreed to pay for. There are thousands of threads here that tell you explicitly its not used in mortgages. Do research before you make a purchase to make sure the product is for you.
Yeah... anyone spending time in the forums knows this.

...but....

Anyone "doing their research" on the myFICO site? They see these pages:
http://www.myfico.com/loancenter/mortgage/step1/getthescores.aspx
http://www.myfico.com/helpcenter/mortgages/buying_a_home.aspx

Which include the claim "Get the Score Lenders Use to Evaluate Your Home Mortgage Loan".

(That page is also currently the second Google hit for a search on fico mortgage)

So... potential purchasers need to know to come here to the forums, to be informed that the myFICO marketing claims are, at best, 6+ months out-of-date (the EQ04 to EQ8 change), and at worst, just knowingly false?

Really?

Because that is NOT getting what you paid for, not if you believed the "Get the Score Lenders Use to Evaluate Your Home Mortgage Loan" claim.

I guess if you read between the lines a bit more, you will notice that nowhere on the website is it mentioned that the scores you can buy from MyFICO are the scores that mortgage lenders use. So in other words, the following are true:

1. FICO scores are used my mortgage lenders

2. MyFICO offers FICO scores

However, the following are also true:

3. There are multiple FICO scores, and

4. MyFICO does not offer the FICO scores that mortgage lenders use

Re: MyFico vs Lender Score - Why the difference??

Anonymous — Sat, 22 Nov 2014 04:21:27 GMT

These scores don't take into account your DTI ( Debt to Income Ratio) When a lender pulls your score, DTI is factored in. If your DTI is low, then your scores will be higher, but if your DTI is high, it will negatively impact your score. Your debt to income ratio is based on your debt i.e. car payment, mortgage/rent, student loans maybe, I can't remember everything that's included compared to your income. I don't think necessarily think myfico is a scam, it's better than nothing. Debt to income ratio is just something to keep in mind when reviewing your score. Hope this helps.

Re: MyFico vs Lender Score - Why the difference??

HiLine — Sat, 22 Nov 2014 04:36:35 GMT

@Anonymous wrote:
These scores don't take into account your DTI ( Debt to Income Ratio) When a lender pulls your score, DTI is factored in. If your DTI is low, then your scores will be higher, but if your DTI is high, it will negatively impact your score. Your debt to income ratio is based on your debt i.e. car payment, mortgage/rent, student loans maybe, I can't remember everything that's included compared to your income. I don't think necessarily think myfico is a scam, it's better than nothing. Debt to income ratio is just something to keep in mind when reviewing your score. Hope this helps.

I don't know what kind of scores you are saying that lenders pull, but I'm 100% sure they are not credit scores. Credit scores do not take income into account. Income and anything related to income are a completely separate set of metrics that lenders use to determine the outcome of your credit application.

Re: MyFico vs Lender Score - Why the difference??

Anonymous — Sat, 22 Nov 2014 15:09:33 GMT

On July 10, 2012 it was announced that a new Fico Mortgage Scoring Model would be used for mortgages. This was developed after the mortgage mess blew up. This scoring model was developed by Fico and Corelogic I believe. It shows things that the traditional scoring models don't see. I'm not sure if all banks use, but the bank I work for does. It's ONLY used for mortgages, and again, I don't know how many lenders use it. I should have stayed in my reply, that I was only speaking about the bank I work for, not all banks. Apologies for any confusion

Re: MyFico vs Lender Score - Why the difference??

Anonymous — Sat, 22 Nov 2014 17:42:46 GMT

If your bank is issuing Conventional loans..... I highly doubt they're NOT using the required Fannie/Freddie Ex98 Eq04 Tu04 scores. Unless its a very small outfit and services their own loans. (Portfolio Lender)