NO real FICO anymore

[gator70]

The Algorithm that companies can buy is so varied that a consumer has no way to know what the score will be. A FICO use to mean a real score, while other models were for evaluation purposes.  Now there are so many real FICO models, a consumer is at a huge disadvantage.

I learned this for the first time after speaking with the MY FICO customer service representative. She said, we offer so many different products to lenders, we can’t tell them what to purchase.  Each model may result in huge differences in scoring and does.

Why purchase scores, they can mean nothing!

[Revelate]

To be fair, there hasn't been a single, true credit score for decades, if ever with how the system is designed (3 bureaus = 3 datasets = 3 scores at a minimum even if we only had a single algorithm, which isn't the case).

End of the day, a recurring refrain you'll hear on these forums is simply to focus on the data, as a pretty report will result in a pretty score regardless of algorithm chosen.  While I think keeping a FICO benchmark is useful for a lot of reasons for many people, there's enough free options that are perfectly servicable to cover most use cases that I tend to agree purchasing scores makes far less sense than it once did, though even in the current market I still purchase one EX score a year typically just to see as I ring in each New Year, but that's a personal choice and certainly not required.

[jamie123]

---

@gator70 wrote:

The Algorithm that companies can buy is so varied that a consumer has no way to know what the score will be. A FICO use to mean a real score, while other models were for evaluation purposes.  Now there are so many real FICO models, a consumer is at a huge disadvantage.

I learned this for the first time after speaking with the MY FICO customer service representative. She said, we offer so many different products to lenders, we can’t tell them what to purchase.  Each model may result in huge differences in scoring and does.

Why purchase scores, they can mean nothing!

---

I agree with you. It has become impossible to tell the exact score that a lender will pull when they run your score.

I think we have to start think more in terms of range and generalities than exact scores. Good scores from a few different sources should equal good scores no matter who pulls the report. It becomes really difficult to make credit decisions when like me, scores are in the middle of the road. When applying for credit it is impossible for me to be certain of approval because my scores could fall on either side of the accept/reject line that lenders use for approvals. It has become really difficult I'm sure for people just starting out or rebuilding their credit where a few points make a huge difference with approvals/rejections for credit cards.

IMHO it puts us as consumers at a greater disadvantage as the higher dollar amount of credit sought impacts our life. Applying for credit cards is one thing. If you are denied you can always just apply somewhere else or apply again in a few months with no harm really done. Applying for an auto loan where the car dealership has an advantage is another thing. I have witnessed a dealership lying to consumers about their scores to boost the interest rate (AND PROFIT) because the consumer was uninformed. Not being able to know your real score in this situation could and will cost you hundreds of dollars. Applying for a mortgage is even worse. Usually you will be going all in. Depending on the score that is pulled it could cost you thousands of extra dollars because you dropped a few points into the next lower tier.

I honestly think this is a scam that is purposely being put in place for lenders to regain the advantage they had over consumers that was lost with the arrival of the internet. Before the internet we were in the dark with the lender being able to dictate the terms of our loans. I see it moving back that way now. You can never call the lender's bluff because, "They are using a different scoring model."

I MEAN REALLY PEOPLE! WE NEED TO WAKE UP! Why do you think that in this age of information it is so hard to find a true credit score? Why as consumers in 2014 we can't access the credit scores our lenders use?

I think that ALL lenders should post which credit scoring model will be used to determine approvals/rejections and we as consumers should be allowed to purchase those scores up front for a small fee.

But until then, its all guess work and its getting harder to guess by the day.

[Middleswarth]

It is very easy to call the lender's bluff.  Go in prepared with your own finance.  Let them know up front they will have a chance to beat it.  

If you think things through and are not compulsive, you should always have the advantage.