topic Re: Scoring Differences in Understanding FICO® Scoring

Scoring Differences

Anonymous — Tue, 26 May 2015 22:45:15 GMT

So my current scores are EQ684 TU682 and EX702 according to FICO 8. Just applied for a mortgage with BoA and was denied a conventional loan because my score came back as a 663. What gives??

Re: Scoring Differences

Anonymous — Wed, 27 May 2015 00:49:35 GMT

@Anonymous wrote:
So my current scores are EQ684 TU682 and EX702 according to FICO 8. Just applied for a mortgage with BoA and was denied a conventional loan because my score came back as a 663. What gives??

They likely used Fico 04, most mortgage lenders do.

Re: Scoring Differences

Anonymous — Wed, 27 May 2015 01:01:19 GMT

I see. Anyway to self-check using FICO 04 scores, connectedly how useful are FICO 08 scores if lenders don't use them? Thanks alot. New to all this!

Re: Scoring Differences

Anonymous — Wed, 27 May 2015 01:15:26 GMT

@Anonymous wrote:
I see. Anyway to self-check using FICO 04 scores, connectedly how useful are FICO 08 scores if lenders don't use them? Thanks alot. New to all this!

MyFico provides those scores and more if you purchase a 3B report. The majority of credit card issuers use Fico 08. Mortgage lenders are just behind the times.

Re: Scoring Differences

cem13 — Wed, 27 May 2015 02:04:14 GMT

@Anonymous wrote:
@Anonymous wrote:
I see. Anyway to self-check using FICO 04 scores, connectedly how useful are FICO 08 scores if lenders don't use them? Thanks alot. New to all this!
MyFico provides those scores and more if you purchase a 3B report. The majority of credit card issuers use Fico 08. Mortgage lenders are just behind the times.

I recently applied and was approved for a mortgage. I had a BK7 discharged JUN2011. My Mortgage Version 3 score was higher than my Fico 04 or FICO 08 so it did not hurt me. So I aked my Loan Officer, "Why do you use Version 3 as opposed to FICO 04 or 08?"

Her reply (paraphrased); "It costs us money every time we upgrade to a new score. We have to pay for each version. FICO is in the money-making business. They try to sell us new FICO scoring models every time a new modle is released. They claim the "new" model is so much better than the previous one."

Re: Scoring Differences

Revelate — Wed, 27 May 2015 05:16:44 GMT

@cem13 wrote:
@Anonymous wrote:
@Anonymous wrote:
I see. Anyway to self-check using FICO 04 scores, connectedly how useful are FICO 08 scores if lenders don't use them? Thanks alot. New to all this!
MyFico provides those scores and more if you purchase a 3B report. The majority of credit card issuers use Fico 08. Mortgage lenders are just behind the times.
I recently applied and was approved for a mortgage. I had a BK7 discharged JUN2011. My Mortgage Version 3 score was higher than my Fico 04 or FICO 08 so it did not hurt me. So I aked my Loan Officer, "Why do you use Version 3 as opposed to FICO 04 or 08?"

Her reply (paraphrased); "It costs us money every time we upgrade to a new score. We have to pay for each version. FICO is in the money-making business. They try to sell us new FICO scoring models every time a new modle is released. They claim the "new" model is so much better than the previous one."

They haven't upgraded because the GSE's won't accept a loan underwritten on anything but their standards: they're FICO 04/98 all the time and have been for years. Very very occasionally it will be underwritten on the older standard which was EQ 96 and not certain quite what else, only seen one reported incidence of that on the forums.

Not sure why LO's keep getting that wrong. Not certain about charging to upgrade versions, fairly confident the fees are the same regardless of what FICO score you request but of course I don't know that for certain.

I'm also in the boat of having my mortgage trifecta non-trivially higher than my FICO 8 scores.