FICO08 (myfico) VS. FICO04(EQ Power score)

[Anonymous]

So I know that these 2 scores use different algorithms for scoring, but what is the major differences?  I read somewhere that FICO08 ignores medical collections under $100.  Is this true?  The reason I am asking is I am trying to improve my score to get a Mortgage and I am to understand that Mortgage lenders use FICO04 not FICO08 as a scoring model.  My EQ score on myfico is 572 and on the EQ site the FICO score from Power score(FICO04) is 456!  That's a 116 point difference!  Now, I have some collections that have agreed to PFD on both reports, 2 being under $100 medical collections.  I have 6 collections total(all should be dropping from PFD) is this the main culprit in the 100+ point difference?  I guess really that game is to wait and see, it is just surprising to see that big of a jump between the two. 

[HiLine]

This has been talked about many times before, so I'll let you gather the information or someone else gather the information and give it to you. But what I'm going to say is, you have to be really aggressive with those collections if you want to get a reasonable rate or even a mortgage at all. For your purposes, you can ignore the FICO score from this site and just stick with the FICO 04 from Equifax.

[Anonymous]

yes, FICO ignores MB under 100, but you really know why they are so different is the secret we all want to know, I have seen where FICO04 are 100 points more than FICO08 so it really just depends on your credit file. ignore the score you see here, its only use by credit card companies.

[Anonymous]

I have PFD(all paid) set for all 6 collections right now, so they should be falling off soon I would imagine.  I'm currently paying down my utilization on my CC's which is only around $1200 (2 Cap1, 1 Target).  I'm near 100% utilization now.  I'm going FHA for a loan, so my target is 620-640.  I also have 3 30 days lates on my car loan from this year (3 years with no missed payments before that), these came about when my wife was in a car accident and we had trouble securing a loan for her and had to put larger downpayment down and fell behind on my other payment.(her car was a total loss).  I am trying to goodwill those but I suspect that I won't get that far with Chase.  We are looking at Spring of 2016 as a target to purchase, so we have a bit of time to rebuild. 

[HiLine]

Sounds like you know what you're doing. The impact of the 30 days late payments will fade away with time, especially if you have other positive accounts to balance them out. If you can get all the collections removed, pay off the credit card balances, and perhaps get a few more credit accounts, I think you can even get to the high 600's by the spring of 2016.

[jamie123]

---

@Anonymous wrote:

I have PFD(all paid) set for all 6 collections right now, so they should be falling off soon I would imagine.  I'm currently paying down my utilization on my CC's which is only around $1200 (2 Cap1, 1 Target).  I'm near 100% utilization now.  I'm going FHA for a loan, so my target is 620-640.  I also have 3 30 days lates on my car loan from this year (3 years with no missed payments before that), these came about when my wife was in a car accident and we had trouble securing a loan for her and had to put larger downpayment down and fell behind on my other payment.(her car was a total loss).  I am trying to goodwill those but I suspect that I won't get that far with Chase.  We are looking at Spring of 2016 as a target to purchase, so we have a bit of time to rebuild. 

---

You seem to know what you are doing and are doing everything right.

I would suggest starting a GW campaign to get rid of those 30 day lates on your auto loan. It is extremely important that both you and your wife have 2 years of absolutely clean history before apping for a mortgage. If you don't have 2 years of clean history you will have a tough time securing a mortgage.

Like another poster said, your scores should hit the high 600s once you pay down your UTI and those collections drop off.

[mongstradamus]

From personal exeperience i have found that 04 scores count AU accounts while 08 pretty much ignore them. Last time i checked my 04 eq it was exact same as my 08 eq score.