Mortgage brokers have told me that the FICO score they pull is different and lower than the ones consumers can buy/have access to. Since I am a newbie, please stop groaning if this has been answered previously. I know there are a lot of different models used to churn out a score, but if I am seriously working toward raising my score to qualify for a mortgage, how should I "see" my scores? I did not have any brokers pull my credit, I just told them my score and got that "it will be lower when we pull" reply. What gives?
I would say they are assuking it'll be lower, because it could be higher. My understanding is that different business models have available to them different models of FICO to use. What I'm saying is that for Mortgages and Auto loans the lender may have access to a FICO scoreing system that gives more weight to installment loans. Also some lenders are now using Nextgen FICO, which from my understanding is suppose to be more accurate in determining whether you default on a loan or not. I here with the Nxtgen Fico, most people would score higher. I could be completely wrong, but that's my understanding.
When a lender buys your credit report, they don't get it directly from the credit bureaus, they buy them from a credit service or reseller. The reseller takes the raw data from the credit bureau, formats it in a way that can be easily read, merges it with the data from the other credit bureaus, runs the program that applies the FICO scoring model and produces a report with all the needed information. The scores can be different depending on the reseller that produces the report. Why? Well, because the score is based on the information in the report, and there will be small variations of the information depending on what reseller it comes from, what the purpose of the report is for, and the agreement between the lender and the reseller. The score you get from your mortgage broker may or may not be lower, higher or the same as the report you get for yourself.
A mortgage FICO is different from an auto FICO, which is different from your own FICO, even when pulled from the same source.
Re: Re: Broker's get a different score? A lender pulls directly from the source, or at least one hopes they do. A lender will have an agreement with one or all of the CRAs to pull a credit report for a discounted price. I have never heard of a lender that pulls from a third-party.
Also some lenders are now using Nextgen FICO, which from my understanding is supposed to be more accurate in determining whether you default on a loan or not. crabjoe =========================== Just how accurate is any score obtained from a data base that has a 70& ERROR RATE? Also Scoring doesn't determine default it measures profitability. Click this link. Victims of Credit Reporting - Credit Scores http://members.aol.com/victcrdrpt/Score.html http://members.aol.com/victcrdrpt/Score.html THE END ** *** ** LB 59 """""""""```~~~```'"""""""""
forget all the different scoring models.. . . technically, the broker is correct, as soon as they pull, the hard inq. hits the report, therefore reducing the score. ok, what do i win for solving the riddle????
Re: Re: Re: Broker's get a different score? You say this with a tone of authority in your post - how do you know this? The other people ansering this question are in the mortgage industry, and have first hand knowledge that third party resellers supply the reports and score to mortgage companies and borkers.
Re: Re: Broker's get a different score? I was able to obtain 2 credit reports from a mortgage broker. The reports were from April 2002 and March 2003. Each report had the exact same information from the 3-in-1 reports I've pulled myself plus 3 scores. The report from the mortgage broker was much easier to read and the entire report was on 3 pages. The FICO socres varied from what I was pulling from Experian, Equifax, and Trans Union. The Experian score was lower, the Equifax and Trans Union scores were higher. I've been working on cleaning my credit for over a year so there were no surprises and the reports were what I expected.
Re: Re: Broker's get a different score? Okay, sounds like I should keep working on raising my score like Deven to not expect surprises! Is it true the inquiry hits right when they pull it?
Re: Re: Re: Broker's get a different score? Yes, that's what happens. If you have 0 inquiries, they see one - theirs.
Re: Re: Broker's get a different score? According to the good folks at FICO, mortgage and auto finance inq's have a "deduping" process - "...these inquiries are ignored for the first 30 calendar days from scoring; then, multiple inquiries within the next 14 days are counted as one." Whether we're being duped or deduped - that is the question. 0
Re: Re: Re: Broker's get a different score? I can honestly say i've never seen a scoring model used by brokers, where multiple mortgage inquiries did NOT affect the score. More Fico B.S.
Re: Re: Re: Broker's get a different score? WRONG!!!!!!!!!!! We are being DUPED...I lost 21 points for the 3 "HARD" for my RE-FI that I didn't finalize... I ALWAYS lose 7 points per "HARD" (EQUIFAX) I got two removed and gained 14 points...
Re: Re: Broker's get a different score? Interesting theory. When I pull a credit report, I do see my own inquiry, but is it figured into the score? It seems very counter-intuitive to suggest it would be. I'd like to know about the scoring models you have seen. Which ones were they? Can I see them too?
Re: Re: Re: Broker's get a different score? YOU PULL---->SCORE CAN'T CHANGE...YOU DID NOT APPY FOR A CREDIT CARD OR LOAN...
Re: Re: Broker's get a different score? One of our members reported that a particular CC Co turned him down because he had 3 inquiries within a 6 month period. He said he had shopped for insurance - that gave him 2 inquiries. The 3rd one was the CC Co he was applying for at the time. He contacted the credit department (analysts), pointed out that the first two were for insurance and the 3 rd on was theirs, He was told it didn't matter, 3 was 3 no matter whose or what for, and that 3 in 6 months was their cutoff point. Two FICO myths busted in one post, IMO - insurance inquiries don't count, and that the current inquiry doesn't count. So, if they can see it, wouldn't it affect the score? Who knows........
Re: Re: Re: Broker's get a different score? Interesting. Recently I read that inquiries were not counted at all in the score if they were within the past 30 days. I didn't think much of the source, so I dismissed it as unreliable, but it sounds similar to what you're saying. Do you remember where you got your information?
Re: Re: Re: Broker's get a different score? INSURANCE COUNTS just like a CREDIT CARD or LOAN!!! I had 4...2 INSURANCE...2 CREDIT CARD...DENIED EXCESSIVE INQUIRES!!! (the 2nd credit card one was theirs) IT'S ALL A JOKE!!! OH I LONG FOR THE GOOD OLD DAYS WHEN THEY JUST LOOKED AT THE PAPER CREDIT REPORT AND SAW ALL THOSE "PAID AS AGREED" or "PAID/NEVER LATE"...and decided then and there...
