topic Re: What is the point of a "Credit Score" if the "FICO score" is the only one th in Rebuilding Your Credit

What is the point of a "Credit Score" if the "FICO score" is the only one that matters?

ccubedzx3 — Fri, 08 Jun 2012 14:19:03 GMT

Is there anything a "credit score" is really used for other than being a sign of false hope? For the past 4 years or so, i've been monitoring my "Credit Score" hoping I would get it to a good enough score to apply for a mortgage. I got to a point where I felt secure enough to apply because I felt my scores were good. Once I tried for pre-approval, I got denied because they used a "FICO score." It was the first I hear of it, but it was then I realized that it was only the "FICO score" that really mattered when applying for a car note or a house note. Needless to say, there was quite a difference between my "Credit Score-671" and my "FICO Score-590" I was so embarrased once I heard how low my score was, and was of course denied. Thankfully I found this site, to help me going forward. However, I am a bit peeved that a "credit score" is such a false hope number that really isn't used for anything of value...or is it? Sorry, had to vent! Have a good weekend!

Re: What is the point of a "Credit Score" if the "FICO score" is the only one th

hdrider07 — Fri, 08 Jun 2012 14:21:34 GMT

The only thing I use a credit score from various sites for is to see the trending that is happening based on my efforts, other than that I dont find any value in them. FICO is what its all about as you learned.

Re: What is the point of a "Credit Score" if the "FICO score" is the only one th

Anonymous — Fri, 08 Jun 2012 15:11:08 GMT

@ccubedzx3 wrote:
Is there anything a "credit score" is really used for other than being a sign of false hope? For the past 4 years or so, i've been monitoring my "Credit Score" hoping I would get it to a good enough score to apply for a mortgage. I got to a point where I felt secure enough to apply because I felt my scores were good. Once I tried for pre-approval, I got denied because they used a "FICO score." It was the first I hear of it, but it was then I realized that it was only the "FICO score" that really mattered when applying for a car note or a house note. Needless to say, there was quite a difference between my "Credit Score-671" and my "FICO Score-590" I was so embarrased once I heard how low my score was, and was of course denied. Thankfully I found this site, to help me going forward. However, I am a bit peeved that a "credit score" is such a false hope number that really isn't used for anything of value...or is it? Sorry, had to vent! Have a good weekend!

Unless I'm mistaken, there are actually pending lawsuits for this... The very small, very fine print that says the scores are for "educational use only," but are presented in a way that makes them seem "relaible."

But yeah, FICO scores are the real deal, and even within FICO scores there are different models... The end result is that good credit is good credit - long history, low balances, and no lates. The "trinity" of good credit, I suppose.

Re: What is the point of a "Credit Score" if the "FICO score" is the only one th

llecs — Fri, 08 Jun 2012 15:51:03 GMT

It's stories like yours that propel many of us to keep saying, "Ignore the FAKOs!".

FAKOs are totally useless. As you experienced there can be a large gap between FAKOs and FICOs. Also, your FICO can go up and FAKO down for the exact same event. They are unreliable and lenders won't use them. Plus the advice that comes with some of these services, if taken, can sometimes harm your FICO score.

Why a FAKO? I think a couple are legit. They are legit in their own mind and they are trying to break out as a competitor to FICO. Vantage, for example, is used by at least a couple lenders off the top of my head. They aren't reliable enough to be picked up by a large number of lenders, but I think they're trying. Most FAKOs though are "for educational purposes only" as pointed out already. Nobody uses them. You've got to understand that we are rare. Not many people even bother to take time to figure out scoring. Probably 90%+ don't even care. So when a service like freecreditscore or creditkarma offers scores, they pay $$$, look at it and move on without wanting to know how it works or why their score is the way it it. If they looked further and studied it like everyone on here does, they'd find that lenders aren't using scores like those.

Re: What is the point of a "Credit Score" if the "FICO score" is the only one th

ccubedzx3 — Fri, 08 Jun 2012 16:01:42 GMT

@llecs wrote:
It's stories like yours that propel many of us to keep saying, "Ignore the FAKOs!".

FAKOs are totally useless. As you experienced there can be a large gap between FAKOs and FICOs. Also, your FICO can go up and FAKO down for the exact same event. They are unreliable and lenders won't use them. Plus the advice that comes with some of these services, if taken, can sometimes harm your FICO score.

Why a FAKO? I think a couple are legit. They are legit in their own mind and they are trying to break out as a competitor to FICO. Vantage, for example, is used by at least a couple lenders off the top of my head. They aren't reliable enough to be picked up by a large number of lenders, but I think they're trying. Most FAKOs though are "for educational purposes only" as pointed out already. Nobody uses them. You've got to understand that we are rare. Not many people even bother to take time to figure out scoring. Probably 90%+ don't even care. So when a service like freecreditscore or creditkarma offers scores, they pay $$$, look at it and move on without wanting to know how it works or why their score is the way it it. If they looked further and studied it like everyone on here does, they'd find that lenders aren't using scores like those.

That is what angers me the most. I was falsely led to believe that my "credit score" mattered. I paid for a service that really is pointless. It's like paying one landscaping company to tell me when my lawn needed to be cut, while I pay another landscaping company to actually cut it.

I'm thinking class action type of anger. I mean, I wasted $15/month for 2 years for a service that is meaningless. I might as well pay the weatherman since he forecasts the weather, even though he might be wrong....heck, i'll still pay him because he forecasted something.....pointless....

As much as i'd like to dole out the cash to keep informed here, I have a bad taste in my mouth and don't want to pay it....but in the back of my mind, I probably should because I want to app for a mortgage within the next year. It is frustrating to no end....

Re: What is the point of a "Credit Score" if the "FICO score" is the only one th

Anonymous — Fri, 08 Jun 2012 16:25:45 GMT

I feel your pain! I was paying $16 a month watch my scores elsewhere. I finally reached 750/750/743 my wife 723/730/723... that worked out to a 680 for me and a 640 for my wife.

Re: What is the point of a "Credit Score" if the "FICO score" is the only one th

Anonymous — Fri, 08 Jun 2012 17:31:40 GMT

so, how did u finally get your fico score?

Re: What is the point of a "Credit Score" if the "FICO score" is the only one th

danny4l — Fri, 08 Jun 2012 17:42:38 GMT

So where do you go to get the 100% accurate FICO score?

I'm confused myself.

Re: What is the point of a "Credit Score" if the "FICO score" is the only one th

llecs — Sat, 09 Jun 2012 02:07:47 GMT

@danny4l wrote:
So where do you go to get the 100% accurate FICO score?

I'm confused myself.

In the case of OP, he/she didn't have a FICO score in the beginning, and learned the scoring different when they applied for a mortgage.

There are dozens of services out there like creditkarma, credit sesame, truecredit, freecreditscore, credit complete, smartcredit, privacyguard, quizzle, creditsecure, zendough, freescore, and so many more that offer credit scores, but these are not FICO scores and lenders don't use them. We call them "FAKO"s.

You can only buy your EQ FICO from your lender, myFICO.com, and from any of these services within Equifax's single report w/ FICO score and Equifax's version of ScoreWatch.

You can only buy your TU FICO from your lender or myFICO.com.

You can't buy your EX FICO from anywhere, though your lender can still get it for you.

Aside from the above, you can get your FICO scores at a free or reduced price as a member benefit to a credit union or bank. Some examples include Unitus Community Credit Union, Digital Credit Union, and M&T Bank for your EQ FICO. You can get your TU FICO from Wal-Mart if you have their CC. And if you are a member of PA State Employees Credit Union (PSECU), you can get your EX FICO each month. Aside from these, there are CUs thoughout the country that will provide a complimentary review of your CR and some will present your FICO too.

ETA...fixed link

Re: What is the point of a "Credit Score" if the "FICO score" is the only one th

annielorie — Fri, 08 Jun 2012 20:36:18 GMT

TO OP:

I know it sucks!! ANd the others are 100% correct. The majority of the peole have no idea of the things that we at this forum know. I use credit Karma: I like to see a report card with A's I was a straight C student. Theodre Roosevelt "the C students rule the world" Korny right but it is fun.

I have eliminate id theft all three repoirts can pull daily.

My fico TR on Quaurterly

Found this site...........My saving grace. You found us !!! We will all help!! Stop being mad and get 800!!!

Re: What is the point of a "Credit Score" if the "FICO score" is the only one th

rckstrscott — Sat, 09 Jun 2012 06:55:03 GMT

@ccubedzx3 wrote:
@llecs wrote:
It's stories like yours that propel many of us to keep saying, "Ignore the FAKOs!".

FAKOs are totally useless. As you experienced there can be a large gap between FAKOs and FICOs. Also, your FICO can go up and FAKO down for the exact same event. They are unreliable and lenders won't use them. Plus the advice that comes with some of these services, if taken, can sometimes harm your FICO score.

Why a FAKO? I think a couple are legit. They are legit in their own mind and they are trying to break out as a competitor to FICO. Vantage, for example, is used by at least a couple lenders off the top of my head. They aren't reliable enough to be picked up by a large number of lenders, but I think they're trying. Most FAKOs though are "for educational purposes only" as pointed out already. Nobody uses them. You've got to understand that we are rare. Not many people even bother to take time to figure out scoring. Probably 90%+ don't even care. So when a service like freecreditscore or creditkarma offers scores, they pay $$$, look at it and move on without wanting to know how it works or why their score is the way it it. If they looked further and studied it like everyone on here does, they'd find that lenders aren't using scores like those.
That is what angers me the most. I was falsely led to believe that my "credit score" mattered. I paid for a service that really is pointless. It's like paying one landscaping company to tell me when my lawn needed to be cut, while I pay another landscaping company to actually cut it.

I'm thinking class action type of anger. I mean, I wasted $15/month for 2 years for a service that is meaningless. I might as well pay the weatherman since he forecasts the weather, even though he might be wrong....heck, i'll still pay him because he forecasted something.....pointless....

As much as i'd like to dole out the cash to keep informed here, I have a bad taste in my mouth and don't want to pay it....but in the back of my mind, I probably should because I want to app for a mortgage within the next year. It is frustrating to no end....

Couple of points:

Usually, a loan officer will explain to you that they will be checking all three FICO scores ahead of time. Hindsight is clearly 20/20, but if you would have taken some time to talk to a loan officer ahead of time instead of diving headlong in, you might have avoided this kind of pain. Maybe someone will learn from this post and take heed.

I, as well, was taken in by the whole credit score fiasco in 2010. I went to buy a car, so I joined True Credit about 2 months prior. Printed out my reports, scores and everything and thought 'I am the best consumer EVER!' -- I thought I might get laughed out of the dealership when my FICO's around the board were a crisp any clean 150 points lower; live and learn is the best way that I can describe it. However, I kept my True Credit because that is what I used as I was cleaning up my credit reports.

Understanding FICO will help you decide when and if to pull reports. I rarely pull an actual FICO. I know right around where my score is just based on knowing what factors impact your score. But I would recommend at least getting your EQ from here, as that will be the exact EQ FICO the lender will pull, when you are ready of couse.

Don't forget. A credit score is only part of the puzzle. i just went through the home buying process myself, the FICO was a realtively small factor compared to other aspects like collection accounts needed to be paid, judgments, a tax lien, income, debt ratio ect ect.. All my score needed to was hit a certain point, everything was dependant on me. Don't get discouraged, and don't think your FICO is the end all be all.

Class action is highly unlikely. While the companies teeter on the edge of unethical, nothing they are selling is illegal. All fine print, disclaimers, and membership agreements state exactly what you are buying and what you are providing money for.

I really do feel for you, I went through the same thing. Actually, almost all of us have. But the sooner you drop the anger over the situation the faster you can move on with the understanding you now have.

-scott

Re: What is the point of a "Credit Score" if the "FICO score" is the only one th

Anonymous — Sat, 09 Jun 2012 14:19:08 GMT

wow, thanks man!!

Re: What is the point of a "Credit Score" if the "FICO score" is the only one th

marty56 — Sat, 09 Jun 2012 19:14:33 GMT

All those subcribers falling for the lure of FAKO scores help to keep the cost of the CMS cheap so we benefit from that.

Re: What is the point of a "Credit Score" if the "FICO score" is the only one th

ccubedzx3 — Thu, 14 Jun 2012 11:02:47 GMT

I'm not really "mad" per se, I just wish I found out about FICO before I found out about FAKO. If I did, I would of been able to start my course of action sooner. I just hope I can get my score up to 650 by December......I wonder if it is even realistic?

Re: What is the point of a "Credit Score" if the "FICO score" is the only one th

Anonymous — Thu, 14 Jun 2012 12:17:24 GMT

You also have to be sure someone is selling a current version of FICO.

Re: What is the point of a "Credit Score" if the "FICO score" is the only one th

Anonymous — Sun, 19 Jan 2014 00:50:53 GMT

I apologize if this is ignorant....

When you get a denial letter and it says they arrived at their decision based on findings on your EQ, TU, or EX and then they include the score, is this score from the specefic CB or did they pull it from FICO?

Re: What is the point of a "Credit Score" if the "FICO score" is the only one th

Shogun — Sun, 19 Jan 2014 01:08:37 GMT

The denial should tell you the method of which the score was calculate.. IE... FICO score of XXX. Now, FICO is a very widely used scoring method, but not the only one around. It depends upon lender preference. Some even have their own proprietary scoring system.

Now, TU, EX and EQ all have their own scores too, and they are offered for sale to lenders, and some lenders do use them, but they aren't of common use.

Re: What is the point of a "Credit Score" if the "FICO score" is the only one th

Lechte — Sun, 19 Jan 2014 01:12:39 GMT

@Anonymous wrote:
I apologize if this is ignorant....

When you get a denial letter and it says they arrived at their decision based on findings on your EQ, TU, or EX and then they include the score, is this score from the specefic CB or did they pull it from FICO?

Some lenders use their own scoring model,...for instance, I was denied and they said my score was 417. The scoring model they used was from 300-620...obviously that wasn't a FICO. Of all the deny letters i've ever received, I can only think of 1 that actually told me they pulled a Fico score. I'm assuming if they don't state that it's a Fico, then it's probably not...(that is only my assumption).

Re: What is the point of a "Credit Score" if the "FICO score" is the only one th

Shogun — Sun, 19 Jan 2014 01:14:27 GMT

@Lechte wrote:
@Anonymous wrote:
I apologize if this is ignorant....

When you get a denial letter and it says they arrived at their decision based on findings on your EQ, TU, or EX and then they include the score, is this score from the specefic CB or did they pull it from FICO?
Some lenders use their own scoring model,...for instance, I was denied and they said my score was 417. The scoring model they used was from 300-620...obviously that wasn't a FICO. Of all the deny letters i've ever received, I can only think of 1 that actually told me they pulled a Fico score. I'm assuming if they don't state that it's a Fico, then it's probably not...(that is only my assumption).

There are also those that use a combination of the 2. They will pull your FICO and then combine it with their own method coming up with a hybrid score. Just one more way to make it more confusing.

Re: What is the point of a "Credit Score" if the "FICO score" is the only one th

Lechte — Sun, 19 Jan 2014 01:19:40 GMT

I was just looking through my recent denial letters....they all said they obtained their scores from the CRA they pulled. BoA was the only one that was a FICO, and it was the only one that was even close to the FICO scores I pulled here.