VeeGee Posted May 17, 2003 Report Share Posted May 17, 2003 About 2 mos ago I had my credit checked with a mortgage lender he told me my score was 722. Recently (3 days ago) I ordered my CR's. My score dropped to 707 ...I cannot see why the score dropped except for some new inquiries, one included the mortgage lender, another was from pre-approved CCC's, and some open accts. that have 0 balances. All this info except for the mortgage inquiry was there all along when my credit was checked 2 mos ago...what could have made it drop so much? Does anyone have any clues? Thanx to all who respond. Link to comment Share on other sites More sharing options...
DocDon Posted May 18, 2003 Report Share Posted May 18, 2003 Inquiries will lower your score somewhat. I've heard there is an allowable variance for mortgages and auto loans because you have the right to shop around for the best rates. A new account will lower your score since there is a greater risk for default since there is no account history. Your score will increase in no time if you keep the balance low and show good payment history. You're in the 700's, so I wouldn't give this too much thought. Link to comment Share on other sites More sharing options...
kb9tbq Posted May 18, 2003 Report Share Posted May 18, 2003 Also when you had the mortgage company check your score; they are using a different model to your score may still be the same in their respect then the one you ordered directly from the CRAs.Each different type of business using credit scores; are using their own models and each will differ from each other. Link to comment Share on other sites More sharing options...
VeeGee Posted May 18, 2003 Author Report Share Posted May 18, 2003 What model could they have used when they checked my score? They came up with 722... yet, when I checked my score it was 707? Link to comment Share on other sites More sharing options...
DocDon Posted May 18, 2003 Report Share Posted May 18, 2003 Like kb9tbq stated, they used their own scoring system. Nobody could possibly know what that scoring system is without asking them directly.Just because they gave you a different number than what your credit reports show, doesn't indicate an increase or drop with respect to the scores from the CRA’s. FICO is simply a voluntary guideline, and companies may choose to come up with their own criteria for an extension of credit.Your 707 FICO is that mortgage company’s 727. Likewise, if they had stated your score is 680, that is according to their individual guidelines – your FICO is still 707. If the scores from the CRA’s has dropped from 727 to 707, then I refer you to my first response. Link to comment Share on other sites More sharing options...
kb9tbq Posted May 19, 2003 Report Share Posted May 19, 2003 I can't name all the different models used: Each CRAs will sell various FICO models to each business (they even sell their own models - not produced by FICO).Each model is based on the needs of the particular business which uses them.Example: Auto Model - this would grade more on past auto loans & it they where ever delinquent.Banks will use an Installment model - will grade more on installment loans contained in the credit report.Sometimes if they want to know default risk they can even run a bankruptcy model.They will all differ; the score you see grades on the complete report - and will serve your purpose of knowing as you go (with the reason codes) what you can improve on next; to increase credit score.But you can bet on a 20 - 50 point difference between your score and what lenders look at. This can swing both ways positive or negative. I would say it is alway safer to over shoot your goal by this much to be in good standing on the lender side. Link to comment Share on other sites More sharing options...
Recommended Posts