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Credit scores at Car Lot is different then FICO.com???


onlybrad
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I have a customer that was told by a dealership that his credit scores were 550-560. Well, I pulled his credit and his scores are in the 650-669 range. I didn't pull directly from fico but the mortgage company that provides us with reports use fico.com software to calculate scores.

Why are the dealerships scores so much different?

Brad

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There are different scoring models, even under the fico umbrella. They have different algorithmic formulas, and weigh factors in a different way. An example may be a credit union score, a bank score, a mortgage score, and a credit card score.

Regardless, despite the scoring model difference, a 100 point gap is pretty huge. Maybe the dealership was trying to jack his rate and told him his score was lower than it actually is? Maybe they pulled from another CRA? I had myFICO tell me my TU score was 662 last week, and on the same day I had my TU score pulled by my credit union- it was 644. The person who pulled it happened to be the manager of the credit union and knew her stuff, and told me they subscribe to a credit union model FICO score.

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I thought that was the case. I knew that FICO has different scoring models for mortgage companies and car lots but... I didn't know the score would be the much off, you know.

I told him to ask the car lot to show him his actual credit score on the reports. He said he would ask them. He said they should it to him on a piece of paper. I told him that sounded fishy...

Does 99% of credit unions pull from all three credit bureaus?

I know 85% +/- Mortgage companies pull from all 3.

Car Lots pull from 1-2 bureaus. I haven't seen but maybe one or two car lenders pull from all 3.

Brad

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In my experience, credit unions and car delaerships usually pull from one CRA. Mortgage companies pull from all three to decrease the chance that they'd miss a debt obligation. It likely costs them more upfront, but the risk is great enough that they do it anyway, sometimes twice, since a mortgage note is large.

While it is possible some dealerships pull from more than one CRA, they may not have necessarily pulled the score from the same CRA as you did. You'd know because the car dealershops inquiry should be on the report you subsequently obtained.

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