Score drops 15 points!!

[llecs]

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@CMONTOYA21 wrote:

They used these

Beacon 5.0 (Equifax)

Empirica something (probably 04) (TransUnion)

FairIsaacRiskScorev2 (Experian)

They were really old debts some the creditors were reaging from like 1996. I thought that was illegal?? I am so confused lol!!

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Most lenders are using those same versions of FICO scores. I closed early last month and my lender used the same. My EQ matched exactly as here, but TU was off because it was a different version, though it was higher for DW and lower for me.

From time to time OCs do misreport. Are you sure it is reporting as a negative? Old OCs help your length of history, your AAoA, and your FICO score. Don't be so quick to want it removed. Now if this is a negative, then yep, you'd want it off. Paid positive accounts should report for 10 years from when you closed it.

[Jesse30]

I went back in took a look at my crdit report, EQ they used a Beacon Score, Ex they used Fair Issac Score 2, and Trans they used something called Classic 04 Score, I don't know what they mean except for the Beacon Score

[llecs]

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@Jesse30 wrote:

I went back in took a look at my crdit report, EQ they used a Beacon Score, Ex they used Fair Issac Score 2, and Trans they used something called Classic 04 Score, I don't know what they mean except for the Beacon Score

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Instead of making it simple like we do (e.g. EX FICO, EQ FICO, TU FICO), FICO and the CRAs came up with a fancy name for that particular version of FICO score. The FICO versions you posted above are the most commonly used.

[Jesse30]

Do you know why they are so different from the myfico score I recieved from here

[llecs]

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@Jesse30 wrote:

Do you know why they are so different from the myfico score I recieved from here

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Your EQ FICO would exactly match with your lender's if you pulled the EQ FICO report on the same day. The TU wouldn't match because it is a different formula. There are about 3-4 versions of TU FICO used by lenders floating out there in the marketplace. Most lenders use a TU04 version. MyFICO sells a TU98 version which is the second-most common used. Because the formula is different, your score would be different from your lender. I don't know the details between the two formulas, though I know that the TU04 version treats HELOCs, LOCs, charge cards, and I think signature cards a bit differently. It also looks at past baddies a bit differently. Inquiries for mortgages and cars are scored differently too.

[Jesse30]

My Equifax Credit Report is reporting the same score as lender, I wish my Transunion score was the same as myfico score. It is off by 28points, surely could of used those points.

[haulingthescoreup]

For the life of me, I don't understand why TU insists on providing a score that's rarely used by lenders any more.

Don't they realize how irrelevant they've become these days? (other than for those mostly in the upper Midwest, where TU traditionally rules)

C'mon TU, if you want to sell some scores, let us buy TU 04! I'd buy one, if only out of curiosity.

[CS800]

Thats where the authorities need to intervene. Why mislead people ? and why not standardize on one specific score. We want people to know their True Scores not some inflated one.

I would love to know the logic in buying FAKO's if most lenders use FICO and even why do FAKO's exist.

I know of a perfect example where someone used FAKO to apply for a car loan with an EQ of 702 but when the lender pulled FICO the EQ was 645. Now you walk into a dealership thinking you're going to get the best rate but then find out that instead of a 5% APR you get 7%.

Just aggravating. And what;s up with EX not selling their scores? What do they have to hide? Don't they want people to know their scores and fix it? Oh wait if everyone has 650+ credit scores, how would the loan sharks survive? Has someone tries to contact EX on this one?

WE are concerned about the welfare of people of Libya but neglecting our own citizen.

[llecs]

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@CS800 wrote:

Thats where the authorities need to intervene. Why mislead people ? and why not standardize on one specific score. We want people to know their True Scores not some inflated one.

I would love to know the logic in buying FAKO's if most lenders use FICO and even why do FAKO's exist.

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I'd hate to go too far OT, but gov't needs to keep their hands off when it comes to creating one standard. I like FICO. I like FICO because lenders like FICO; they generally don't use FAKOs because they are unreliable, unpredictable, and a poor predictor of risk. However, as a free-market thinker, the government shouldn't do anything that prevents competition. One day, FICO is going to slack off and make some bad choices and I bet one day lenders will call FICO into question. It's like that with every company; there will always be ebbs and flows. If we take steps to stifle competition, then that better product that lenders would want to use to replace FICO may not get off the ground.

Now most FAKOs out there, like PLUS scores on freecreditreport, are gimmicks. Some monitoring services even come right out and say that their score is nothing like FICO and lenders don't use it. At least they're honest. But one day a FAKO will emerge as a serious contender to FICO. I think VantageScore has a shot at that in the future (some lenders do use it), but not now. As much as I love FICO, I don't want any barriers to a free market. If FICO slacks off, it'll only hurt the borrowers (us) in the long-term because lenders will have to charge more fees and raise rates to cover those who default. If a FAKO like Vantage fills that void by offering a better risk assessment than FICO, I'd rather have them come out front so that we won't get financially burned.

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@CS800 wrote:

Just aggravating. And what;s up with EX not selling their scores? What do they have to hide? Don't they want people to know their scores and fix it? Oh wait if everyone has 650+ credit scores, how would the loan sharks survive? Has someone tries to contact EX on this one?

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I'm aggrevated too! Though I'd stop short on a government mandate to require EX to provide data to FICO for consumer pulls. I don't think EX should be forced to offer their data to whomever they are told to provide it to. I think a score disclosure by a lender it a step in the right direction though, even for CCs if a score was used in consideration of the app. When EX FICOs were offered here, FICO had to pay $$$ to EX. EX put a stop to that because they forked out $$$$$$$$ to help create Vantage, which they see as a direct contender to FICO. They are nowhere there yet, IMO, but it's a matter of time. If EX continued to allow FICO pulls on myFICO, then they loose out on the opportunity for consumers to be exposed to the Vantage or PLUS scores. When someone comes along and sees a site for "free scores", there's nothing free about it. But for the consumer who never reads the T&C and clicks the check box that they agree to those terms, then it's free money at $14.95/mo. Many don't even realize they are being billed untils weeks or months later. EX gets a heck of a lot more money through that method than it did getting royalties off FICO.

[CS800]

I agree that the government needs to stay out of the free market. Heck I pay too much taxes as it is. While competition is good and as you said people don't read T&C, i consider these services as a form of exploitation of the people. The ignorance of many fuels the $$ of these companies.

To start with why is a secret formula known to nobody but a few used to run the lives of most people? Don't we have the right to know what we are being accused of technically speaking?

Has the formula ever been questioned on its processes? Free market is all good but do we know if we're being screwed by the formula and its calculations?

Shouldn't the formula be adjusted  for special situations i.e loss of jobs, etc? In my situation, the loss of a job removed my ability to pay my cards and other bills on time. In this down economy, many people are behind, foreclosures raging all over; and it's not the person's fault but we do get penalized heavily as per the FICO system.

So although I agree with you, I have a lot of reservations concerning the validity of FICO in all situations. I think special considerations needs to be given to people with special circumstances.

As For EX its all about the $$. Free market is good but at whose expense? I know every company wants to grow but again who are the losers in that? We the people.

Sorry for being so negative but i know the FICO system is here to stay so the best we can do is work with it and  I'm glad im on this board so I can educate myself and hopefully others.