Significant difference in three FICO scores

[Anonymous]

Hi,

I attended a FICO web course last week (Fri). One of the hosts said the three FICO scores should be within a few points of each other. I assumed that to mean +/-20pt. However, the difference between my highest and lowest score is -72pt. And a -60 between the middle and lowest score. How should I go about addressing this? My spouse and I would like to purchase a new home (my 4th, his 3rd) and I wanted to get this cleared up before we start the preapproval paperwork. Thanks for any info.

Message Edited by 3girlsmom on 02-29-2008 04:04 AM

[Anonymous]

Really neet to go though them Trade Line by trade line, item by item with the reports side by side-

Start with accounts with any baddies (lates, cllections, Public records)

Look for accounts that have not been updated,

Look for missing accounts-

If identical data is on all three- the score will be close-

I am sure you will find a major difference with the kind of point spread-  

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3girlsmom wrote:

Hi,

I attended a FICO web course last week (Fri). One of the hosts said the three FICO scores should be within a few points of each other. I assumed that to mean +/-20pt. However, the difference between my highest and lowest score is -72pt. And a -60 between the middle and lowest score. How should I go about addressing this? My spouse and I would like to purchase a new home (my 4th, his 3rd) and I wanted to get this cleared up before we start the preapproval paperwork. Thanks for any info.

Message Edited by 3girlsmom on 02-29-2008 04:04 AM

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[Anonymous]

Timothy,

Thanks for your response. Please let me know what you mean by updated and missing accounts. I took your advice and reviewed the different data. The number of accounts are different (the lowest score reflects 6 fewer accounts than the highest score), the credit history is consistent between the middle and lowest score (14 yrs) whereas the highest score reflects 18 yrs. I had one 60 delinquency that all agencies acknowledge (7/06). Should I contact the different agencies so that all of the information is the same? If so, how do I do that? Thanks.

[Anonymous]

what he means by updated accounts, is making sure they are reflecting the same updated information on all reports. i.e. if one shows a capitol one balance of $500 and another report shows a balance of $200. Missing accounts would be entire accounts showing on one or two reports, but not showing on the others.

[Anonymous]

Thanks Moobs,

But I'm still left with the question: What do I do if the information is not consistent? How do I get them to reflect the same info?

[Anonymous]

3........seldom do all 3 reports show the same info. They are as unique in that as they are with their respective scoring models.

I contend there is no human being alive anywhere who fully understands FICO scoring. I wonder if the Fair-Issacs programmers even understand the monster they have created.

72 points might be a little wide of a spread, but not unheard of. Remember, most creditors who pull all 3 of your reportgs will usually go with the middle score.

As long as all the information on all 3 reports is accurate you're ok.  

[Anonymous]

Thanks for your input.

I haven't been able to get a straight answer on how to address the problem. I know you said most institutions will go with the middle score. If that's true, I don't have a problem. But I was under the impression that creditors generally have a preference for one agency over another. If that's true the low score could be a problem. Not a huge problem, but something I'd like to correct if the score is in error. Thanks again.

[Anonymous]

I don't think you can address the problem. Because the problem (it's not really a problem IMO) is inaddressable......if that makes sense.

My 3 reports all contain the same exact accounts. They are all reporting - yet I have 3 different scores.

[haulingthescoreup]

For mortgages, most lenders pull all three and go with the middle score. For most other credit accounts, the lender has a preferred CRA and goes with that. Some lenders (Capitol One, NASA FCU I think) pull all three, but I don't know if they commit to going with the top vs middle vs bottom.

For those with identical reports, yes, you will have different scores, because each CRA commissions its own formula, which gives different weights to different aspects of your credit history. So (speaking generally) EQ is hard on lates, EX on inqs, TU likes mortgages and lots of revolving accounts with zero balances. With their permission, I pulled all three score reports for all three of my young adult children, and this was proven in their cases. They have "thin" files (not a lot of accounts), so there isn't any variation, but each one's three scores are very different.

My guess is that these differences in formulas is one reason why some lenders prefer one CRA over another. (Other reasons are the stability and reliability of the reports, and force of habit.)