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Old 12-20-2014, 02:31 PM
 
Location: Round Rock, Texas
10,769 posts, read 10,180,494 times
Reputation: 14294

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We've put in a loan application for a home. Received our credit scores and they were both 20-30 points lower than the scores we were given by myfico.com. I thought myfico was supposed to be the one closest to what lenders use. I think it's crazy that there is such disparity when it comes to credit scores. As a result of this lowering (particularly when it comes to my husband), we are not getting a better rate and our monthly payment is higher. Not exactly what we were hoping for.
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Old 12-20-2014, 02:43 PM
 
Location: Raleigh, NC
1,495 posts, read 1,234,500 times
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2 of my friends who are mortgage loan officers said that IdentityGuard has closer credit score estimates to the mortgage lenders than myfico.com. I haven't tried it, but anyone else have any comments on that?
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Old 12-20-2014, 05:46 PM
 
12 posts, read 18,459 times
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Myfico is real FICO scores but utilizes the 2008 flavor of FICO vs the 2004 flavor that mortgage lenders use. I have seen 50-60 point disparities. I would not rely on IdentityGuard as they are not real FICO generated scores.
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Old 12-21-2014, 05:32 AM
 
1,230 posts, read 1,556,984 times
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Quote:
Originally Posted by I Luv Las Colinas View Post
Myfico is real FICO scores but utilizes the 2008 flavor of FICO vs the 2004 flavor that mortgage lenders use. I have seen 50-60 point disparities. I would not rely on IdentityGuard as they are not real FICO generated scores.
So, would the 2008 flavor be based on a best score of 850 and the 2004 flavor be based on the old best score of 800?

That would account for a point difference. Do all mortgage lenders use the older version or does it depend on the lender? Is there a formula to convert from one flavor to the other?
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Old 12-21-2014, 09:26 AM
 
12 posts, read 18,459 times
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No, Fico 2004 max score is still 850, just like Fico 2008. There is no conversion formula, but it is more difficult to have a very high score in Fico 2004 vs Fico 2008. All the myriad of factors that into the score are not the same and are weighted differently.

All mortgage lenders use Fico 2004, as far as I am aware. Fico 2008 means nothing to them as it is mainly used in consumer nonmortgage lending.
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Old 12-21-2014, 11:02 AM
 
Location: MID ATLANTIC
7,729 posts, read 18,603,553 times
Reputation: 8389
I have rarely seen self service ficos match the ones when we pull credit.

Scores are a constantly moving target. If you jacked up up 2 credit cards, paid them both off, but the second cc payment had not been received and posted, that score can move as much as 20 - 30 points.
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Old 12-21-2014, 07:56 PM
 
Location: Round Rock, Texas
10,769 posts, read 10,180,494 times
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It stinks that the self serve FICOs aren't the flavor that the mortgage lenders use. It would be nice to know where you stand before applying, instead of getting your feelings hurt. Now we have to pay more for a smaller $ house. That sucks.
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Old 12-21-2014, 09:19 PM
 
Location: MID ATLANTIC
7,729 posts, read 18,603,553 times
Reputation: 8389
It stinks if you have to do something right now, but there are some things you can do for an almost immediate bump in score. First: do not close any revolving accounts. Second: check all your revolving limits. If your balance is more than 50% of the limit, first, attempt to get your limit moved up. Eg; balance is 7K on 10K limit. Request increase on limit to 15K. If that doesn't work, pay down card to under 5K. Any accounts with derogatory belong to someone else on a jount account? Get your name off if th account. The time to meet with a lian officer is 6 months in advance of making a move so this is not done under stress.
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Old 12-22-2014, 12:31 AM
 
Location: Southern California
4,426 posts, read 5,295,531 times
Reputation: 2177
Quote:
Originally Posted by riaelise View Post
It stinks that the self serve FICOs aren't the flavor that the mortgage lenders use. It would be nice to know where you stand before applying, instead of getting your feelings hurt. Now we have to pay more for a smaller $ house. That sucks.
Equifax and Experian charge close to $40 for scores and reports from all three bureaus. I wonder how close these scores are to the ones the lenders pull. Could it be the case, you get what you pay for? The next time I do a lender pull for my scores I'll pay the $40 and see how close they are.
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Old 12-22-2014, 10:01 AM
 
Location: Boise, ID
8,043 posts, read 23,710,612 times
Reputation: 9334
I haven't noticed them being lower. I just recently had my credit pulled by a credit union for refinancing my house, and the score was over 820 (out of 850). I can't imagine it being much higher on any other scale. Maybe, since it was a credit union, they used the consumer method?

But credit scores can vary as much as 50 points throughout the month anyway, depending on whether you just paid your bill, or are at maximum monthly spending, and whether you have gone over the arbitrary % of usage, and a variety of other factors. Also, some items might be reported to some of the reporting agencies and not others. My mom had her scores pulled by a bank last week for a construction loan (parents are builders) and her 3 scores were about 80 points apart, since 2 of the 3 agencies had a mistake on them that was lowering her score, which she didn't know about and is now working to fix. The 3rd didn't have that item, and was correct, and about 80 points higher.
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