TRUE CREDIT - Varies from Fico?

[Anonymous]

I have noticed the difference inthe scoring.

I have had both and the True Credit scores are way lower than MYFICO.

What is up with that.  I don't know which one is the most accurate score.  It can make a huge difference when asking for new credit.

[MidnightVoice]

According to Credit Scoring 101:

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=2654

FICO, FAKO, HUH?

FICO, FAKO, Credit Score, PlusScore, ScoreX, Vantage are all the same right? WRONG!

FICO = The score lenders use and the only score you care about.
FAKO = Any score that isn't a FICO.

[Anonymous]

Thanks!  I will cancel the True Credit.

[Anonymous]

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Revike wrote:
I think the "too many accounts" and "too much available credit" warnings are almost ready to be added to the Myth List. My wife and I have more than the average number of accounts and plenty of available credit and neither fact has ever been mentioned during the process of buying a house, refinancing, and then buying a new house. There are a number of people who have posted in this and other forums who have 20+ open revolving accounts and high FICO scores. There was a poster elsewhere who had more than 300K in available credit and a FICO of 800.

My experience has always been that lenders are far more concerned with your actual debt-to-income ratio. If you have a history of being responsible and a lender still seems excessively worried about what bizarre moves you might make in the future, you might want to consider speaking to a different lender ...

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Well it can be too much of a myth when it happened to Fused on an earlier post and it also happened to  my brother and his wife when they bought their house.    He had three credit cards and she had over 10(both credit cards and charge cards)   They kept their balances low and paid on time, their bank said their number of credit cards kept them from getting their best interest rate, because of too much potential debt.   They argued with them but in the end  she closed out half of her cards and they qualified for the best interest rate available.  And the each had well into the 700's FICO scores.   

I guess not all banks and mortgage lenders are the same but it's definitly not a MYTH.

[MM1234]

Hey this post turned up some good advice and actual happenings to learn from. I can see both sides of it. I dont actually need or use all the cards I have so if they are newer and non-prime I would close them if thats all thats stopping me with a good lender and a good rate. But if they wanted to give me a higher rate and still wanted me to close them I would look elsewhere.

To answer ILOVEPIZZA - I'd have to look and see for sure but most of the non-prime ones are like 2 yrs old. My prime ones are older. So maybe thats what the messages was about. Again it was from MY report so maybe it only applied to me. I dont know for sure. But yes, most replies are Canned or cookie cutter.

TC and FICO I think work differnt. TC may work off that Vantage Format that looks at your credit totally differnt than FICO. But I dont know why they are showing a Range of 300-850 when Vantage is scored from 400-900 or something like that.

[Tuscani]

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MM1234 wrote:
Hey this post turned up some good advice and actual happenings to learn from. I can see both sides of it. I dont actually need or use all the cards I have so if they are newer and non-prime I would close them if thats all thats stopping me with a good lender and a good rate. But if they wanted to give me a higher rate and still wanted me to close them I would look elsewhere.

To answer ILOVEPIZZA - I'd have to look and see for sure but most of the non-prime ones are like 2 yrs old. My prime ones are older. So maybe thats what the messages was about. Again it was from MY report so maybe it only applied to me. I dont know for sure. But yes, most replies are Canned or cookie cutter.

TC and FICO I think work differnt. TC may work off that Vantage Format that looks at your credit totally differnt than FICO. But I dont know why they are showing a Range of 300-850 when Vantage is scored from 400-900 or something like that.

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TC does not use Vantage.

[MM1234]

"TC does not use Vantage." No?? So what do they use? its it a FAKO? Thanks

[MM1234]

Beledona - If you wanted to see how your score is with TC and FICO it may be good to keep TC for a few months just to get a overall view. Im doing that now and its interesting to see how they scores vary. But i need to know for a home loan in case some lenders use TC or a similar system or some use FICO. I want to be sure I can see what they are seeing before going in for a loan so Im not surprised.

[Anonymous]

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@Anonymous wrote:

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Well it can be too much of a myth when it happened to Fused on an earlier post and it also happened to my brother and his wife when they bought their house. He had three credit cards and she had over 10(both credit cards and charge cards) They kept their balances low and paid on time, their bank said their number of credit cards kept them from getting their best interest rate, because of too much potential debt. They argued with them but in the end she closed out half of her cards and they qualified for the best interest rate available. And the each had well into the 700's FICO scores.

I guess not all banks and mortgage lenders are the same but it's definitly not a MYTH.

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How about a compromise - it's a myth when applied purely to FICO scores, but not a myth when dealing with lenders?

I never understood the logic of forcing responsible applicants to close CC accounts with a "high" CL but low or zero utilization. Five minutes after escrow closes, the applicants can reapply for new credit cards and easily increase their CL again. Some people have reported that the CC companies actually facilitate this, and allow customers to close an account prior to loan approval, then allow the same account to be re-opened immediately after escrow closes. The lender's demand does not effectively reduce any risk, and just serves to needlessly inconvenience the applicants.

[Tuscani]

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MM1234 wrote:
"TC does not use Vantage." No?? So what do they use? its it a FAKO? Thanks

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they use their own scoring model.. that's why it's called a FAKO.