Credit Score in Brooklyn>Question Details

Carissa, Home Buyer in Brooklyn, OH

Credit scores: different when the broker pulls?

Asked by Carissa, Brooklyn, OH Mon Mar 31, 2008

My husband has a score of 680, but when the original mortgage broker pulle dhis scores is was 580- he said a different math is applied. Now a big bank has seen our report we pulled and said they can work with us- will they eventually just pull it the same way and see the lower scores and reject us? Their enthusiasm seems surprising since the other mortgage broker said our scores are too low when calculated from a bank's perspective

I am asking: Is a 682 a good score for a mortgage and has anyone had this experience?

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Answers

17
the banks dont blend the 3 scores.
Every lender uses the middle score.
If there is only 1 borrower and the scores are
500-600-700....then they will use 600 as it is the 'middle score'

If there are 2 borrowers then they use the lower of the 2 middle scores.
Husband 600-700-800 = Middle score 700
Wife 700-750-800 = Middle Score 750
Lower the 2 middle scores 700,750 = 700
1 vote Thank Flag Link Tue Apr 1, 2008
Thank you all, I did look at it and the one we pull is the 682 and a little lower for the other two but the information is the same on even the lowest one from teh broker. This wasn't a case of blending, this was a report that literally reads
transunion: 611
Equifax: 598
experian: 581

But when WE pull it those same companies show 100 points higher.

Odd odd odd.

I guess the broker was saying to me that even experion and the others give him a different score based on different math BECAUSE he is a broker and that when a consumer pulls it it's the same level as a car loan or something...but when a bank or broker pulls, it's lowered....
but thanks!
0 votes Thank Flag Link Tue Apr 1, 2008
sounds like you need to rent for now
wait for prices to decline
pay your bills on time
and try to improve your credit score as Tman described below

anyways

good luck
0 votes Thank Flag Link Tue Apr 1, 2008
Carissa,

Actually quite a few lenders like National City, SunTrust, Wachovia and Palmetto just to name a few, blend their scoring ... on the other hand, a lot of Credit Unions will use the lowest score to carry their lending decisions - which in itself is good business.

That said, it still won't be helping your situation.

Have you actually looked at your credit report.?

.. It would help your issue greatly to get with Free credit report.com, Fico.com or any of the quality credit systems and sit down and go over it line by line .. some accounts could be aged and could be pulled off, some accounts could be in error .. of course, there might some accounts that a letter and $125 would make it go away ...

The worse thing that could happen .. you'll understand your credit history better and then work on rebuilding it in the next 8/10 months ... this way you'll be asking questions about a 780 score instead of a 580 score ... why pay thousands more in closing costs, lenders fee's and a tall interest rate..??


Good luck : ^)
0 votes Thank Flag Link Tue Apr 1, 2008
Thank you. WIth his scores even in the blend being 670, I don't know why it came so low, but the information here has been helpful and hopeful- it sounds like the bank will come up with what we came up with.

thanks!
0 votes Thank Flag Link Tue Apr 1, 2008
Hello:
thank you both, again and again. What exactly are they blending with a blend?

100 is just such a difference. The three scores he gets merge into like a 675, so I hope that's what this bank does...

thanks, this has become a time consuming thread for everyone and I appreciate it.
0 votes Thank Flag Link Tue Apr 1, 2008
Carissa,

Yes, every lender can be different because some might use Experian, some might prefer Equifax and FICO combo's ...

The reason why you might be seeing such "huge" difference is .. most are using something called an "universal revue" .. and this is a "blend" .... I've seen some that are 722 and the rest are 788 or the other way around .. some might be 685 and the rest "blend" into 610.


:^)
0 votes Thank Flag Link Mon Mar 31, 2008
Scores from all three companies are pulled and they generally take the middle score.

I had an occasion, years ago, when TRW presented one credit report to the vendors and a different one to me. I was told there was a class action suit brought against them. You do have recourse.
Web Reference: http://GailGladstone.com
0 votes Thank Flag Link Mon Mar 31, 2008
Ok I thnk I get it, it's just odd because each report I have has EXACTLY the same info, yet the one from the broker has 100 points lower---so let's hope the buig bank uses the same one my fico used

thank you ALL for your patience and information, i can't tell you how crazy making this is! Basically, the bank is saying the score is fine but I am afraid when they run it themselves we will run into the same issue

thanks!!!!!
0 votes Thank Flag Link Mon Mar 31, 2008
they're models, and do not go by year.

myfico.com will have the latest fico model...because they're FICO.
Your bank may not be using the latest FICO model
0 votes Thank Flag Link Mon Mar 31, 2008
ok, to be finally clear: if I am using the same fico pulling method as my bank, will we have teh same score or do banks pull a different number even when using the same year?
0 votes Thank Flag Link Mon Mar 31, 2008
banks/lenders pull from FICO.
Some Banks may have FICO 04 or FICO 05....this is why the score varies.

BofA may use FICO Score Model 04
I may use FICO Score Model 05

You may use Windows XP.....I may use Windows Vista.
0 votes Thank Flag Link Mon Mar 31, 2008
When you say "credit company" has their own way, do you mean experian v transunion or do you mean chase bank will give a different score than when I pull it on myfico.com?

meaning: if fico is the one that comes us wiht the model, am I and the bank seeing the same score?

thanks so much, this is very confusing to me.
0 votes Thank Flag Link Mon Mar 31, 2008
Yes He is correct every credit comapny has their own criteria for Scoring
Web Reference: http://www.call4loan.net
0 votes Thank Flag Link Mon Mar 31, 2008
There are many different types of credit software.
For example..
Windows are different platforms that ppl use.
Some are using Windows 98....most are using Windows XP.
The new software is Vista, but not every person has it.

FICO usually comes out with a new scoring model every 4-5months.
They recently had an update this year, and one in 09/2007.
A lot of lenders are still using the 09/2007 model, and some are using the one for 2008.

The model in 09/2007 doesnt count authorized user accounts in the credit score.
If you found a lender that uses an older model, then you will have a much higher score with the authorized user accounts.

You'll always have a different score with each lender...especially if they're using a different model.
Remember this doesnt even account for the recent credit pulls.
0 votes Thank Flag Link Mon Mar 31, 2008
Thanks, my main question that I cannot seem to find anywhere is whether the consumer pulled scores respresent what the banks use to determine a mortgage or if anyone out there has experience with having one score and then having it be lower when a bank pulls it.

thanks!
0 votes Thank Flag Link Mon Mar 31, 2008
Carissa,

You may find some helpful information on http://www.myfico.com/. This website may answer some of your questions.

Regards,
Sandy Shores, Realtor
M & M Real Estate
Residential, Investment & Relocations
Brevard County
Florida's Space Coast
0 votes Thank Flag Link Mon Mar 31, 2008
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