TU score drop after inquiries

[dynamicvb]

I’ve noticed something strange in regards to TU when they get a HO inquiry. It drops 3 points on each pull, but my other two have not changed. All three have about the same number of inquiries, but only TU seems to take a hit. My main reason for wondering about this is I’m applying for a mortgage and the TU mortgage score was in the middle and it took the hit after they checked. As anyone else seen this or do you know why this is happening.

it seems to me if they are all reporting Fico 8 scores then they should all drop or all rise on changes.

[Anonymous]

What's a HO inquiry?  That sounds like the sort of "hey sailor" thing that can get you arrested for solicitation.

You mention that you are looking for a mortgage but the scores you say you are tracking are FICO 8.  Just as an FYI your mortgage lender will not use FICO 8, but rather the much older FICO mortgage scores. 

You write:

"it seems to me if they are all reporting Fico 8 scores then they should all drop or all rise on changes."

That turns out not to be true for three reasons.

(1)  You are not certain that all three bureaus have exactly the same number of inquiries.  (You say that they have "about" the same number.)   If you go from 2 to 3 inquiries (just to pick a number at random) there might be a FICO penalty when going from 3 to 4 there might not be.

(2)  Even if you had exactly the same number of inquiries, you might not have the same number of scorable inquiries.  An inquiry might not be scorable for several reasons: an inquiry could be on your report but > 12 months old, for example.

(3)  When a given FICO model is implemented at a particular CRA, the CRA makes actual changes to the model itself.  Thus the EX FICO 8 model is different from the TU FICO 8 model.  The models are largely the same but are substantial enough to cause 20 points of difference between the exact same data on each profile.  With the earlier mortgage models the differences can be even more prounounced.

[Anonymous]

I think the OP may be asking why if he takes a HP on TU that his TU scores drop but not his EX/EQ scores.  The answer is that EX/EQ aren't being impacted by a HP on TU (they don't see/possess the HP), so they can't drop from a TU HP.  If I'm completely misunderstanding the question I apologize of course.

[Anonymous]

All HO Inquiries should be directed to the Garden Club Thread.

[dynamicvb]

Sorry that was a typo. I meant hard pulls. TU has 7, EQ has 7 and EX has 8. All the accounts are the same and the same negatives on all three. There is one account on TU that is reporting a charge off that is under dispute as it’s not correct.

i understand the fico 8 are not used for the mortgage lender, but all the versions do seem to be related. If fico 8 goes up so does the mortgage scores. I have not ordered another full report to see if it’s changed and will just wait for my subscription to update this week to see.

i just thought this was strange as all three got the same inquiry. They are not all the exact same score so it may be a difference how each area is weighted.

[Anonymous]

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@dynamicvb wrote:

If fico 8 goes up so does the mortgage scores.

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Not necessarily.  Two examples:

Suppose you have exactly one derog on your reports, a collection listed for $110.  You pull your records and discover that was an error: the actual collection was for $90.  You have that corrected on your reports (so that the collection now reads $90).  Your FICO 8 scores will skyrocket and your mortgage scores will not change.

You have exactly one loan on your report, a student loan originally fo $10,000.  You currently owe $9200.  If you then pay your loan down to $800, your FICO 8 scores will all go up about 30 points, but your TU and EQ mortgage scores will remain unchanged.

I just grabbed those examples within easy reach.  There are likely others.

[Anonymous]

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@dynamicvb wrote:

I have not ordered another full report to see if it’s changed and will just wait for my subscription to update this week to see.

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Good choice.  Definately do not pay for reports.  You can get frequent reports for free.

[iv]

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@Anonymous wrote:

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@dynamicvb wrote:

If fico 8 goes up so does the mortgage scores.

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Not necessarily.  Two examples:

Suppose you have exactly one derog on your reports, a collection listed for $110.  You pull your records and discover that was an error: the actual collection was for $90.  You have that corrected on your reports (so that the collection now reads $90).  Your FICO 8 scores will skyrocket and your mortgage scores will not change.

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Or worse, the mortgage scores may well drop, due to an updated activity date on the collection!

But yes, different models, different behaviors - while the general direction may be the same, there are many edge cases like these... always make sure you are looking at the model that will actually be used for the loan you care about. (And understand the quirks of the model before taking actions...)

[Anonymous]

Great input from CGID and iv above.

[dynamicvb]

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@Anonymous wrote:

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@dynamicvb wrote:

I have not ordered another full report to see if it’s changed and will just wait for my subscription to update this week to see.

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Good choice.  Definately do not pay for reports.  You can get frequent reports for free.

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Credit guy, so where is a location you can get the other fico scores such as the mortgage scores for free? The only place I've found that shows those is under a myfico.com subscription. Its actually the only reason I really knew those existed.