Sign in to follow this  
talha

FICO Score differences between credit reporting agency and lender

Recommended Posts

Hi,

 

A lender pulled my credit profile for mortgage preapproval. My FICO scores (for Equifax, Transunion & Experian) were significantly different from what I am getting when I go directly to the three credit reporting agencies.

 

Plus, lender told me that mortgage hard inquiry do no impact FICO scores. is that true?

 

Please advise .

Share this post


Link to post
Share on other sites

There are many different FICO scoring algorithms.  The one consumers see is the "sucker" score.  It predicts if you will use credit cards and pay interest and occasional late fees.  The mortgage broker gets a different model.  And, yes, "mortgage shopping" (i.e., multiple inquiries in a short time frame) does lower your mortgage scores.

 

Share this post


Link to post
Share on other sites
25 minutes ago, talha said:

A lender pulled my credit profile for mortgage preapproval. My FICO scores (for Equifax, Transunion & Experian) were significantly different from what I am getting when I go directly to the three credit reporting agencies.

Those scores you get are the FICO bank card scores and reflect the number used if you are applying for credit cards.  There are several FICO scores and lenders use specific ones for mortgage or auto loans.  If you needed to know your FICO mortgage score the only way to get one that is relatively accurate is to purchase all three reports from MyFico.com and look at your mortgage scores.  Those numbers are different from the FICO 8 you get with your reports from the bureaus.  Depending on how you got the reports those scores may also be what is called FAKO in that they are not directly from FICO or are a Vantage score which no lender uses.

30 minutes ago, talha said:

Plus, lender told me that mortgage hard inquiry do no impact FICO scores. is that true?

Not as much as they used to.  IF you have not been opening a lot of credit accounts in the past year then it will not affect your score too much to be significant but it will affect your score.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this