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Credit Score Understanding

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Ineedhelp
Member

Credit Score Understanding

Someone help me please understand this credit scoring system we use in the United States that has gotten to be so complicated. Ok,  Purchased my scores a week ago because we are seeking mortgage Va loan approval. Was told that we need a 640 or better. TU:658 / Equifax:652/Experian:699 

I had the mortgage banker pull the scores today and they are  TU:591 / Equifax:642 / Experian:588

 

So here is the good news. My wife's scores are OK :625 /708/762. But we are seeking the VA mortgage and we need my scores. Can someone please explain when nothing has changed other than the little debt we had went down why my scores are so smurfing different (seen the smurfs yesterday). Mortgage banker told me that the scores they get are different from the ones everybody purchases on the intranet. If that is the case, why are we all buying them?

 

Smurfing Upset in South Carolina!

 

Message 1 of 12
11 REPLIES 11
kjm79
Valued Contributor

Re: Credit Score Understanding

Deep breath, well....where did you get your first set of scores?  More than likely there were what is referred to as "FAKOS" or non-fico scores.  Each CB makes up their own scores to try and sell to consumers to make more money.  But they are not FICO scores and very few lenders use any version of the FAKOs out there. 

 

TU and EQ FICOs can be bought here.  The version of TU here is an older version, TU98, than some lenders are using now which is TU04 (but it is still used and still a valid FICO score vs FAKO).  An EQ you pull here should match just about any lender EQ pull if no changes in between pulls and lender isn't using some sort of enhanced FICO scores (auto enhanced, mortgage enhanced, bank card enhanced FICO).  EX FICO scores are not available to the general public anymore.  You have to get it from a lender basically.  There's a credit union in PA that offers it to it's members though, if you can get in PSECU or something like that. 

 

Why do people buy the other scores out there, because they don't know they aren't the REAL credit scores that lenders look at.  They don't know they aren't FICO scores until they come here or until they talk to a lender.  Smiley Wink

 

ETA:  I spoke with a CSR at NFCU the other day about VA loans and he said that they do not require minimum credit scores as long as you meet the VA loan qualifications (ie no lates past 12 months, dti ratios, etc...)  I was just inquiring and not seriously at a point to app, but thought I'd share the info about the scores I was given.  Found it very interesting as I had not heard of a lender not caring about scores at all. 

 


CH 7 Filed 7/27/15 Discharged 11/16/15
Starting Score: EQ 620 TU 568 EX 593
Current Score (07/13/16): EQ 674 TU 649 EX 674 (FICO's 08)
Cap1 QS ($5350) (Combined QS and QS1) Discover It ($4100) MilStar ($8,600) Fingerhut ($800)
Off to the garden 05/01/16
Message 2 of 12
gagum129
Regular Contributor

Re: Credit Score Understanding

If you do a search on FAKO scores on this forum you will find your answer several times over. The only true score you can purchase and should be the same as what your lender pulls is your Equifax score here at MyFICO.  Any Experian or Transunion score you purchase, including the Transunion score here at myFICO, will be different and are called FAKO scores.

 

On another note, you don't necessarily have to have a 640 to qualify for a VA loan. That is your particular lender's guidelines. Do some searching on here and you will see people getting approved with a mid score of 580. Just depends exactly what's on your report.


Starting Score: 582
Current Score:
Equifax 684 MyFico 10/10/11
Transunion 659 lender pull 7/6/11
Experian 690 lender pull 7/6/11

Goal Score: 700


Take the FICO Fitness Challenge
Message 3 of 12
MarineVietVet
Moderator Emeritus

Re: Credit Score Understanding


@gagum129 wrote:

If you do a search on FAKO scores on this forum you will find your answer several times over. The only true score you can purchase and should be the same as what your lender pulls is your Equifax score here at MyFICO.  Any Experian or Transunion score you purchase, including the Transunion score here at myFICO, will be different and are called FAKO scores.

 

On another note, you don't necessarily have to have a 640 to qualify for a VA loan. That is your particular lender's guidelines. Do some searching on here and you will see people getting approved with a mid score of 580. Just depends exactly what's on your report.



So as not to confuse the OP and other newer members I have to correct what you said here. The TU score here at myFICO most certainly is a FICO score and although it's an older version (TU98 vs. TU04) lenders across the country still pull miilions of TU98 scores each year. So please don't call it a FAKO score.

 

 

 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Message 4 of 12
Ineedhelp
Member

Re: Credit Score Understanding

Purchased the scores here on my fico. That is why it is so confusing!

Message 5 of 12
Booner72
Senior Contributor

Re: Credit Score Understanding

So your EQ score was 10 points different from when you pulled it here and when the bank pulled it?  What had changed?  Those scores should have been the same if they had been pulled in the same day.

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Message 6 of 12
kjm79
Valued Contributor

Re: Credit Score Understanding

You said the "little debt we had went down".  Did it go down to ZERO?  If so, that's probably why the score dropped, if there were no other changes.  Other reason could be is that the lender pulled a mortgage enhanced score. 


CH 7 Filed 7/27/15 Discharged 11/16/15
Starting Score: EQ 620 TU 568 EX 593
Current Score (07/13/16): EQ 674 TU 649 EX 674 (FICO's 08)
Cap1 QS ($5350) (Combined QS and QS1) Discover It ($4100) MilStar ($8,600) Fingerhut ($800)
Off to the garden 05/01/16
Message 7 of 12
Ineedhelp
Member

Re: Credit Score Understanding

What is a mortgage enhanced score!

Message 8 of 12
kjm79
Valued Contributor

Re: Credit Score Understanding


@Ineedhelp wrote:

What is a mortgage enhanced score!


lol!  We have our FICO scores (which are hard enough to get and understand) but to make things even MORE complicated and confusing there are other variations of the FICO scores.  Auto enhanced, mortgage enhanced, bank card enhanced.  They are scores that look at and score your prior history with auto loans, mortgage, and credit card histories.  Consumers can not purchase these scores and must get them from a lender.  Are we having fun yet?  Smiley Wink


CH 7 Filed 7/27/15 Discharged 11/16/15
Starting Score: EQ 620 TU 568 EX 593
Current Score (07/13/16): EQ 674 TU 649 EX 674 (FICO's 08)
Cap1 QS ($5350) (Combined QS and QS1) Discover It ($4100) MilStar ($8,600) Fingerhut ($800)
Off to the garden 05/01/16
Message 9 of 12
Booner72
Senior Contributor

Re: Credit Score Understanding

I've never heard of "mortgage enhanced" scores before until just now, and as you all know, I've been doing nothing but reading this forum since May 24, 2011.  I've never read of anyone complaining about that scoring model.  Auto and credit card for sure.  I'm not saying it's not out there, just saying what I said.

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Message 10 of 12
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