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Credit Score Variances

For many consumers, checking their credit scores can yield a variety of results. With instant access to credit scores now available through most major credit card, bank, and credit services sites, it has never been easier to see where you stand. Credit scores can vary from one service to the next, depending on which credit bureau is providing the information, so it can be confusing to see a different score depending on where you look.

This variance in credit scores can be frustrating for consumers who feel confident that they understand where their score is before applying for credit. For example, there can be a huge difference between a FICO score and a Vantage score. The previous Vantage models could have a score as high as 990, whereas the highest score now in most industry models is 850. In that scenario, you could potentially have a much higher credit score using that older model, but it would not be a true reflection of what most bureaus report.

Almost all lenders and banks use your FICO (Fair Isaac Corp.) score when evaluating credit risk and depend on the three main credit agencies (Experian, TransUnion, and Equifax) to calculate that score. These agencies provide lenders with the most accurate determination of your score, which helps discern creditworthiness. Understanding your credit score and your credit report is vital when you are applying for a new loan. That is why it is imperative to work with a Mortgage Planner who will take the time to review your score, answer your questions about the scores that you may have seen, and help you understand the process.

When you apply for a mortgage loan with us, we will be happy to review your credit report with you. Together, we can decide if your credit will impact your ability to qualify for a mortgage loan or your lowest interest rate so that you can make the best decision about your new home.

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