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I am considering purchasing a home and before going through the preapproval process I pulled all 3 of my credit scores. I thought they stacked up well with 694/706/716, but when I was speaking with lenders all were stating that my scores were in the 680 - 690 mark. When I asked why I got different scores, one replied that what I got was a consumer score and they get a lender score. Is this true? If so doesn't it defeat the purpose of monitoring my own credit?

greg1 · Posted: Mon Nov 03, 2008 12:53 pm Post subject:

Yes it is true and no it does not defeat the purpose. Monitoring your credit report is essential to keeping your credit free from any discrepencies. The score still gives you an idea of where you stand although not exactly the same.

smithsussane · Posted: Mon Nov 03, 2008 8:09 pm Post subject:

Hi BostonCDV!

Welcome to forums!

Yes as far as I know, the consumer score and the lender scores are slightly different from one another. I agree with Greg that the scores that you get will give you an idea as to where you stand and what your chances are to get a loan.

Feel free to ask if you have further queries.

Sussane

carlpruitt · Posted: Sun Nov 09, 2008 8:13 pm Post subject:

Better to know which direction your score is heading even if you don't know exactly what it is. That way you can know if any incorrect information makes it's way onto your credit report.

The consumer score is different because Fair Isaac does not allow, for some inane reason, consumers to have direct access to the mortgage credit scoring system through two of the credit bureaus, so credit bureaus have a system for simulating the score which never comes out the same. One of the scores you receive, however will be an actual FICO generated score.

Samantha · Posted: Mon Nov 10, 2008 5:02 am Post subject:

Hi BostonCDV,

The consumer credit score and the mortgage credit score may be slightly different because lenders consider certain factors while calculating your mortgage credit score. Whereas the consumer credit score calculation involves other factors. So, yes, the two can be different.

May god bless you.

Samantha

jveenstra · Posted: Mon Nov 10, 2008 11:10 am Post subject:

Mortgage lenders use a different credit scoring system than many other industries. A large amount of mortgage money comes from the SECONDARY MARKET. The SECONDARY MARKET sells large pools of mortgages to investors (mutual funds, other countries, pension funds, insurance companies, etc.). The "pools of mortgages" that are sold in the SECONDARY MARKET have characteristics that are "similar" so that investors have a better idea what they are buying. For discussion sake, mortgages adopted version 3 of the credit scoring system years ago and have never changed so that the pools of mortgages are made up of mortgages acquired from the same type credit scoring system. While the mortgage industry has not changed which version of the credit scoring model they used, changes have been made over the years to the consumer credit scoring model. It may be up to version 15, but, mortgages still use version 3. Additionally, the auto industry and other industries have their own credit scoring models for their own industries.
You should always monitor credit to make sure no fraud etc. but your credit score for mortgage purposes will be based upon the mortgage credit scoring version. Additionally, your scores could be different because you got them on different days. On any given day anything can affect your credit score.

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Lenders getting a different credit score?