How are you? Hope you're doing well & this home search/mortgage inquiry hasn't gotten you too frazzled! I like credit karma & I recommend it to my clients who want to get a general idea of their creditworthiness and/or monitor their credit over the long term. It's considered a "consumer model" because you (the consumer) can get it for free & it doesn't affect your overall score when you request it. The report the lenders/landlords use is a "commercial model" because they're using it to make a determination about you & each time it's requested, your score is slightly diminished. As per their disclosure listed below, credit karma does not use FICO which is what the bank relies on.
As some others have stated here, either way 770 or 789 are both good scores & shouldn't make that much of a difference in a rate.
Licensed Real Estate Salesperson
Apartment updates available at http://www.christinegordon.postlets.com
"Home is where the heart is."
A Lender can use any combination to justify their decisions.
770 is pretty terrific score, and 789 is exceptional:
These scores will yield a great Interest rate.
The difference between 770 and 789 is marginal, and nothing to hang your head about.
Good luck and may God bless
I'm a commercial real estate agent in New York City. Even though your credit is very good, you may be able to increase it to 800 to qualify for the lowest interest rates.
Different credit agencies may have varying scores depending on how they calculate items within your credit history. Both 770 and 789 are very good scores and fall within the range of 740-800, which is classified "Very Good". Obviously, you have managed your credit excellently as it is already very good. However, you may be able to tweek it to raise it a few points to 800 to get the very top interest rates by doing the following.
First, if you haven't already done so, it's a good it's a good idea to look at your credit reports from all three reporting agencies, Exerpian, TransUnion and Equifax. The U.S. government requires that you can get one free credit report a year, so you can request a free report online. Be sure you use the link below because when you google it, there are so many imposters, it's hard to figure out what is what.
Also, myfico has suggestions how to improve credit. Someone with your score is no doubt doing practically everything right, but there are a few tips, such as not closing old credit card accounts (they show longevity of credit) and maintaining small balances that you pay off monthly. Also, it's a good idea to pay off all store accounts (e.g. Macy's) as they lower your score slightly. Here are some myfico pages that may be of help.
Hope this demystifies the credit score process and helps you get a better score, Barak.
Please let me know if I can be of further assistance.
Commercial Real Estate Agent
Also, the bank pulls the three and uses the middle score. Trust what the bank is telling you.
A score of 770 is terrific; no worries.
One additional point: There really isn't a big difference between 770 and 789. Both are extremely good. I'm not aware of any programs that, for example, would reject you at 770 but accept you at 789. And the other answers have already pointed out why variations exist, even if you're really talking about apples-to-apples.
Also, if someone has bad credit, they'll be charged a higher rate, not a lower one. Although in today's climate, a poor credit score probably will just get you rejected outright. Back in the "olden days," someone with a lower credit score could get a loan, just at a higher rate. The higher rate reflects the additional risk the bank is taking in making the loan.
Hope that helps.
Here is a great article that may offer some insight into your question: "What's in a Credit Score? More than You Might Think, and It's Constantly Changing"
I hope this answered your question! If you have any further questions, please feel free to contact me by the ways below.
Wishing you all the best,
De Vonte Williamson
Licensed Real Estate Salesperson
Proudly Serving Long Island
Coldwell Banker Residential
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