differing experian scores

[Anonymous]

I have worked for 2 years to bump my credit score > 700 to obtain the homemortgage I wanted.  Experian score/FICO score reads 723.  However that same day the mortgage company pulls and shows my Experian score to be 685.  I can't get anyone to explain to me why the scores would be so different.  Isn't there only one experian?  ANd....since they are so different and it's accurate, why and what can I do to raise it?

I called and had a worthless conversation with experian rep that told me my score is 723 and there isn't a different one. so it didn't make sense to him.  

[Anonymous]

---

@Anonymous wrote:

I have worked for 2 years to bump my credit score > 700 to obtain the homemortgage I wanted.  Experian score/FICO score reads 723.  However that same day the mortgage company pulls and shows my Experian score to be 685.  I can't get anyone to explain to me why the scores would be so different.  Isn't there only one experian?  ANd....since they are so different and it's accurate, why and what can I do to raise it?

I called and had a worthless conversation with experian rep that told me my score is 723 and there isn't a different one. so it didn't make sense to him.  

---

FICO scores differ based on the model used to analyze your data.  FICO Score 8 is the most commonly used model but a lender might use Experian FICO Score 2 which is specifically designed for mortgages.  So the first thing you need to ask your mortgage company is which Experian FICO Score model they use.

"While FICO® Score 8 is the most widely used FICO Score, there are other versions of the FICO Score that lenders may use when evaluating your request for credit. Industry-specific FICO Score versions are commonly used for mortgages, auto loans and credit cards."

[DollyLama]

As Maize has stated, yes lenders will use mortgage scores. There are numerous scores, auto scores, bankcard scores, mortgage scores, etc, besides the FICO 8. 

I do not know your file, but mortgage scores do not like having numerous revolvers reporting ie, say you have 6 credit cards, keep it at one card only reporting. If that is not feasible, get it under 50% of total cards. 

Utilization pays a factor just like FICO 8, individually and aggregate. Strive for less than 28.9% of your total credit lines to report a balance, optimal is <8.9%. 

Do not apply for any new credit prior to applying, nor during the mortgage application until you have closed and funded on your new home. 

Do you have any derogatory marks on your file, collections, charge offs, or late payments ? If so, this is a major factor in dragging down the score. Make every attempt to get a pay for delete. If a late payment(s), goodwill letters to see if they can be removed. 

Also note: If applying with a joint applicant, lenders will use the lowest of the two applicants "middle" mortgage score. So finding out all 3 mortgage scores of each bureau to find your middle. Toss out the highest and lowest and you have your "middle" score. 

[Anonymous]

I have 3 year old late payments on my car.  UTD for last 26 months.  my account will be paid off next month.  when that is closed will those late payments go away?   2)  my concern is the car loan that is about to be paid off is one of my older accounts as well.  then when that leaves this will affect my average.  not sure there is anything I can do about it.   There is a credit score simulator on credit karma that lets you see what might happen if you increase or decrease balances, etc.  It shows you what your score can do.  Is there something that can help me figure that out with FICO 2?    It can't possibly just be a guessing game.  I have < 4% utilization on my credit cards now which is what pushed my experian fico 8 score up to 723 (I needed 700).  and then when they ran it the FICO 2 was 685.  

[dynamicvb]

If you order the 3b reports from myfico it will show you quite a few of the scores that are used in different scenarios. Costs a little but worth it to me to know. 

Once the loan is closed, if that is your only open installment loan, then you will get a ding there for credit mix. The lates are there for the 7 years. 30 day lates do not hurt as much after a couple of years. 60 day or more hurt the whole time

[DollyLama]

---

@Anonymous wrote:

I have 3 year old late payments on my car.  UTD for last 26 months.  my account will be paid off next month.  when that is closed will those late payments go away?   2)  my concern is the car loan that is about to be paid off is one of my older accounts as well.  then when that leaves this will affect my average.  not sure there is anything I can do about it.   There is a credit score simulator on credit karma that lets you see what might happen if you increase or decrease balances, etc.  It shows you what your score can do.  Is there something that can help me figure that out with FICO 2?    It can't possibly just be a guessing game.  I have < 4% utilization on my credit cards now which is what pushed my experian fico 8 score up to 723 (I needed 700).  and then when they ran it the FICO 2 was 685.  

---

1) No the late payments will not go away, the paid loan will remain on your reports for about 7 years.  Since it has been over 2 years since any deliquency on this account, and approaching the last payment, plead mercy, whatever reason it caused, you have diligently worked hard to get it current, on time over 2 years and ask if they call remove the lates. 

2) If the car loan is your only open installment, your FICO 8 scores will lose double digit points for not having it in the credit mix. However, I do not think it affects the mortgage scores near as much. It won't affect the age of the oldest account, as the loan will need to age off your reports, and you still have about 7 years before that happens. 

3) There is no simulator for mortgage score, CGID, Thomas Thumb, and some moderators have collected various scenarios with their accounts and have a bit of information on what does affect the mortgage scores. Example,  reporting balances on multiple accounts regardless of utilization. If you are doing AZEO at 4%, this does not apply to you. 

What is the age of your youngest account? It might be approaching a threshold at a year for score bump. 

Date of oldest and youngest hard pull inquiry? These also maybe aging off, 1 yr on FICO 8, total removal at 24 months.

The late payments are your biggest obstacle that are weighting down your scores, all of them. 

Since you speak only of FICO 2 score, is this your "middle" score? Do you know the other 2 mortgage scores? Perhaps it might be your lowest and tossed out. Really need an idea on current middle score. 

[Anonymous]

Thank you for info. Experian is my middle score. That’s the issue. There’s not much really in my control at this point I’m gathering. I worked my tail off to pay off my credit cards. I can’t speed up time. And I certainly can’t extend my car loan. So I guess I just keeping grinding.