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Please Explain....

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Anonymous
Not applicable

Please Explain....

So I was applying for a personal loan the other day and I checked all my scores ahead of time. The loan officer informed me they pull from TU and I checked my score on MyFico at 720. She gave me an idea of what my interest would be with that kind of score and so I agreed to take the HP.

 

She instantly came back with a score of 650. How is this possible? My TU had just updated that day and hasnt been that low for a long time. I have zero baddies and good util, just a short credit history. Anyway, I backed out of the loan as the interest almost doubled. Just trying to understand why this happened and would appreciate any info.

 

Thanks!

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takeshi74
Senior Contributor

Re: Please Explain....

Scores are a very common topic here.  You cannot assume that all scores are the same.  The specific scoring model will definitely have an impact on the number generated.  Even with FICO there are a number of different scoring models used by creditors.  See also the Understanding FICO Scoring subforum and its stickies.  You cannot use a score generated by one model to determine a score generated by another model.  Different models use different algorithms that weigh factors differently so you should expect different algorithms to produce different results.  Additionally, some scoring models aren't on the same points scale as FICO 8.

 

If you want to know the number that a creditor will pull for you then you will need to know the model and CRA used.  Even then not all scores based on all models are available to consumers.

 

myFICO's scores are FICO 8's though they do provide some additional scores now.  As an example, my wife and I just applied for a mortgage with Chase.  Her FICO 8's are right around 820 but mortgage lenders generally do not use FICO 8.  I don't recall which model Chase Mortgage uses but the mid score they pulled for my wife was a 780.

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