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FICO vs Lender scores

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jamie123
Valued Contributor

Re: FICO vs Lender scores

I wasn't ranting at you Revelate but to MyFICO in general. What do they think most people are here for? Rebuilding credit? Better credit cards? Auto loans?

 

I'm quite sure all of thiose are valid reasons but the long game is for obtaining a mortgage and knowing EXACTLY what your scores are before doing a formal mortgage app. I mean what the heck happens if your mortgage company pulls your scores and you fall 3 points short of where you thought you would be? It might cost you 1/4 point more interest on your 30 year mortgage. That's some serious cash. It is well worth the 179.00 a year investment to make sure that doesn't happen. We all know that there can be drastic differences in the FICO 04 and 08 scoring models. Everyone that uses this site are already trying to maximize their 08 scores when we all know some things that are okay with the 08 model will tank your 04 score.

 

I'm also wondering if Sen. Elizebeth Warren is aware that consumers can no longer find out their mortgage scores even if they have to pay for them. We need to make sure that the Consumer Financial Protection Bureau is made aware of the issue.

 

I mean really, its 2014 and we as consumers can't find out what our mortgage credit scores are unless we go through a lender and subject our credit scores to a HP that will depress our scores for a year? Why?

 

We need transparency thoughout the entire process so we as consumers know EXACTLY where we stand before applying for something as long term as a mortgage.

 

Really, Revelate, I appreciate all you do for these forums but I think we are currently being sold a lesser product by MyFICO than what we had before the change to the FICO 08 model.

 

We are just starting to see the backlash on the boards from people that are getting turned down for mortgages because of their score differential between 04 and 08. It will only get worse.


Starting Score: EQ 653 6/21/12
Current Score: EQ 817 3/10/20 - EX 820 3/13/20 - TU 825 3/03/20
Message 21 of 29
Revelate
Moderator Emeritus

Re: FICO vs Lender scores

I'm not going to repost the full diatribes I made to the FICO administrators of the forum regarding the switch to FICO 8 models here at myFICO, but suffice to say I agree with you completely.

 

When they started talking TU-switcharoo I even begged them to pick up TU '04 Classic as another common mortgage score after we lost Beacon 5.0, but that fell on deaf ears as well.

 

For a division labelled as FICO Consumer, a decidedly consumer-unfriendly decision was made, and we're not privy to the rationale: they're doing better at keeping their secrets than the NSA is. 




        
Message 22 of 29
TheFate
Established Contributor

Re: FICO vs Lender scores

I have not heard of one company that bases their scoring off of the FICO 08 model. 

 

FICO 04 is the only one I trust as its more accurate. At this point I don't pay much attn to what my score supposebly is, just whats on my report which everyone should go off of.

 

With that being said Is the FICO 04 model still avail to consumers?

Message 23 of 29
Revelate
Moderator Emeritus

Re: FICO vs Lender scores


@TheFate wrote:

I have not heard of one company that bases their scoring off of the FICO 08 model. 

 

FICO 04 is the only one I trust as its more accurate. At this point I don't pay much attn to what my score supposebly is, just whats on my report which everyone should go off of.

 

With that being said Is the FICO 04 model still avail to consumers?


Credit card issuers have been using FICO 8 for years.

 

For mortgages though, it's anathema.  You can still purchase EQ Beacon 5.0 (a mortgage score / FICO '04 model) from Equifax directly via their Score Power product.  It's also available to DCU members still.  Honestly I still treat EQ Beacon 5.0 as my benchmark, my FICO 8 scores may be over 700, and that's qualified me for some cards I wouldn't have otherwise gotten, but I don't care too much about those and as such the FICO 8 models don't rate in my world.

 

ETA: Discover and Barclays (FICO Open Access program effectively guaruntees that), and my FICO 8 EX score has matched what Amex has given me previously.




        
Message 24 of 29
720andBeyond
Valued Member

Re: FICO vs Lender scores

Oddly enough my credit union only uses TransUnion and the Fico 08 model for all loans, including my mortgage. Since the Equifax Fico 08 is what we have here it allows me to see another 08 model score and I do like that ability. Compared to my TransUnion Fico 08 Walmart score, my Equifax score is 31 points higher than my TransUnion, so there is definately some large differences just between TransUnion and Equifax even within the same score 08 scoring model.

 

Message 25 of 29
mongstradamus
Super Contributor

Re: FICO vs Lender scores


@TheFate wrote:

I have not heard of one company that bases their scoring off of the FICO 08 model. 

 

FICO 04 is the only one I trust as its more accurate. At this point I don't pay much attn to what my score supposebly is, just whats on my report which everyone should go off of.

 

With that being said Is the FICO 04 model still avail to consumers?


EQ04 is available via equifax site or being member of Digital credit union(DCU). Also PSECU gives out ex04 scores, but you have to qualify for membership . 



EX Fico 804 11/16/16 Fako 800 Credit.com 11/16/16
EQ SW bank enhanced 11/16/16 839 CK fako 822 11/16/16
TU Fico discover 10/19/16 814 Fako 819 Creditkarma 11/16/16
Message 26 of 29
Revelate
Moderator Emeritus

Re: FICO vs Lender scores


@mongstradamus wrote:

@TheFate wrote:

I have not heard of one company that bases their scoring off of the FICO 08 model. 

 

FICO 04 is the only one I trust as its more accurate. At this point I don't pay much attn to what my score supposebly is, just whats on my report which everyone should go off of.

 

With that being said Is the FICO 04 model still avail to consumers?


EQ04 is available via equifax site or being member of Digital credit union(DCU). Also PSECU gives out ex04 scores, but you have to qualify for membership . 


EX Risk Model v2 which is '98 unless they changed it.

 

Still it's a typical tri-merge mortgage model: ergo it doesn't suck as a result.




        
Message 27 of 29
TheFate
Established Contributor

Re: FICO vs Lender scores

I just don't understand why its made out to be so complicated.

 

There should only be ONE model to go by, not hundreds.

Message 28 of 29
Revelate
Moderator Emeritus

Re: FICO vs Lender scores


@TheFate wrote:

I just don't understand why its made out to be so complicated.

 

There should only be ONE model to go by, not hundreds.


Put simply people don't treat all lines of credit the same.

 

In general, people care far more about their car or their house and making their payments than their credit cards: as such, their behavior with credit cards and patterns of default are very much skewed.  I know personally I'd do whatever it took to keep my house, but that's because I don't need a car for work: if I absolutely had to have a car to keep my employment, I might switch the two, and I'd absolutely let my credit cards burn before either of those two assets.  Others may feel differently, and if we've both had times of financial stress, that'll show up in the data and that's actionable information for a lender.

 

That's a simple example, and there's lots more, but end of the day there's so many models because FICO's customers want them, because it makes them more profitable, and therefore makes FICO more profitable.




        
Message 29 of 29
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