Sick and Tired of scores running the world

[ChrisinKC]

So today I checked my FICO scores on myfico.com.  I got the Equifax and Transunion score.  I did this around 2:00 pm CT.  My TU score was 789, and my Equifax was 662.  First of all, that's absolutely freaking ridiculous that scores can be that far apart, but I knew my Equifax was low because of 2 collections that are both 5 years old.  Equifax was the only credit reporting agency that had either of those collections on them, and I know that's why their score is lower, but I think over a 100 point difference for 2 collections that are 5 years old is WAAAAAAAAAAY excessive.

I had checked my Experian report before and knew that it's score would be comparable to Transunion, so I called a mortgage loan officer who I had been working with.  He ended up running my credit and gave me the following scores:

• Experian - 739
• Transunion - 736
• Equifax - 662

Hmmmm, I wonder why my Transunion score from the bank doesn't match the myfico.com score of 789?????  Why is my score 53 points lower from the mortgage company as opposed to myfico.com?  What a freaking joke. 

I'm so sick of not being able to get the scores that lenders get without having to apply for credit and then have points stolen from you just because you need to know your score.  In my case, I HAD to get preapproved in order for my offer to be accepted, AND I will have to have my credit ran again on Sep. 1st when I close on the house, so I will have my score lowered two freaking times for the exact same transaction from the exact same mortgage company for the exact same loan terms, with eveyrthing else being exactly the same.  What a load of crud.

The reason I'm not closing until Sep. 1st is because that's when the construction will be complete, and I had to make my offer now otherwise I'd risk losing the house to someone else. 

This credit scoring system is a freaking scam and I CAN NOT believe that other's don't think so too.  Why aren't people just up in arms about this?  Things need to CHANGE.

[Anonymous]

 There are around 47 different versions and models of FICO.  Each one is going to be different.  TU98, which is what you get from myFICO is always different than that of a lender pull which is TU04.  It can be higher or lower.

Even if you had the exact same credit reports across all of the CRAs, each score would not be the same due to the version of FICO used and how it is calculated.

[ChrisinKC]

That's my point exactly.  Credit scoring needs to be changed, simplified and be MUCH more transparent to the consumer who gets bent over by the banks, insurance companies, etc for having whatever score that they pull.  I should know EXACTLY what score the mortgage company is going to pull PRIOR to them pulling it.  Why should I let them pull my score, steal points from my score, all to find out that my score didn't qualify me for what I wanted, and then have to either wait or do something else to make my score higher AND have to make up for the points that were lost by them pulling my credit? 

The entire credit scoring system is a SCAM.

[boomhower]

Scoring is what you make of it.  If you keep your reports clean with no derogs, low utility, and don't app like crazy your credit will be fine for whatever you need.  Look at your scores, EX and TU were very close do to clean reports.  EQ took a big hit due to collections.  100 points is a lot but nothing says more about failure to pay than collections and you have not only one but two so a big score hit should be expected.(not trying to dog you, I have two collections as well.)  It just boils down to keeping your credit clean and your score will take care of itself.

[ABuckNow]

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@ChrisinKC wrote:

Hmmmm, I wonder why my Transunion score from the bank doesn't match the myfico.com score of 789?????  Why is my score 53 points lower from the mortgage company as opposed to myfico.com?  What a freaking joke.  

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That's an easy one: the TU score myfico sells is basically a FAKO.  it's fico's outdated TU98 model.  it's irrelevant.  it may as well be a Vantage, or a Plus score 

[Anonymous]

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@ABuckNow wrote:

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@ChrisinKC wrote:

Hmmmm, I wonder why my Transunion score from the bank doesn't match the myfico.com score of 789?????  Why is my score 53 points lower from the mortgage company as opposed to myfico.com?  What a freaking joke.  

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That's an easy one: the TU score myfico sells is basically a FAKO.  it's fico's outdated TU98 model.  it's irrelevant.  it may as well be a Vantage, or a Plus score 

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Some lenders still use TU98.  And it can't be a FAKO even if it is outdated.  It is still a FICO.

[llecs]

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@Anonymous wrote:

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@ABuckNow wrote:

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@ChrisinKC wrote:

Hmmmm, I wonder why my Transunion score from the bank doesn't match the myfico.com score of 789?????  Why is my score 53 points lower from the mortgage company as opposed to myfico.com?  What a freaking joke.  

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That's an easy one: the TU score myfico sells is basically a FAKO.  it's fico's outdated TU98 model.  it's irrelevant.  it may as well be a Vantage, or a Plus score 

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Some lenders still use TU98.  And it can't be a FAKO even if it is outdated.  It is still a FICO.

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And I'll throw out that as of not too long ago TU98 was used much more frequently than TU08 (and still might be true today). If TU98 is outdated and considered a FAKO is the newest version of TU FICO considered the same?

[VirtualCuriosity]

With credit being the most advertised and coveted product, there is much money to be made with all of the scoring systems.  One thing I would add is IF creditors were obligated to report to each of the big CRAs, the scores would at least tighten up some.  In my case 4 accounts that report to EQ and EX are not reported to TU.  But, also, my scores are not too much different.

[Anonymous]

Myfico just gives you a general idea where your score might be. Each lender has their own lending criteria. Some lender want to ignore some bad stuff and other prime lenders are very tough. Different fico score are due to different models used by each lender based on their lending criteria. If every lender based decision just on fico score then many people would not even get credit after bankruptcy for long time. Generally small banks or CU use the general form of credit score because they lack the internal analytics team to create their own models.

[ChrisinKC]

And what u said is exactly why the use of the current credit scoring system needs to eliminated until it's completely revamped.

No one should have to GUESS what they would qualify for, but with all of the credit scoring models, that's what everyone has to do. That only works out well for the lenders. For a ample, my score on TU08 MIGHT be 850, but with TU98 it's 736. If there's not a consistent scoring algorithim, lenders can CHOOSE to "award" you with a rate for the 736 score instead of 850. I wonder who that works out better for?

Credit scoring needs to be COMPLETELY transparent. There needs to either be ONE algorithm that EVERYONE uses, OR each lender must tell you PRIOR to applying which algorithm they use, AND the customer should have access to the exact same score as the lenders use. Why take the risk of losing points for applying for credit when you know that you will either not be approved at all, or you may not receive the terms that you need?

The current system is a BIG FAT SCAM and it ONLY benefits the lenders. It's time people spoke up and DEMANDED transparency and CHANGE. Call your state representative and DEMAND CHANGE.