Credit score discrepancies

[tbrannies]

What is the name of your state? Oregon

I purchased my credit report, with credit scores, from myfico.com prior to applying for a car loan through my credit union. Because that's what I thought a consumer should do - be informed about their scores and what’s on their report, blah, blah, blah. The score my credit union showed for Experian was 85 points LOWER than what is showing on the report I have - ran the same day. I was offered a much higher interest rate than the one I thought I should be getting.

Then, my husband and I applied for a mortgage for a new house, with the lender using the tri-merge method. Again, both of our scores come out on their reports as 50-150 points lower than those we have from myfico.com. Again resulting in a much higher interest rate.

I understand that there can be discrepancies between the three bureaus, but how can there be such a huge discrepancy between the information we have and the information they (the lenders) have? I know their offers for credit can be based on much more than just our credit score, but when I ask them what score they have, the numbers they give me are wayyyyyyyy lower than those I have, and I am told that that is why we are being offered such high rates. Not adverse credit information, but the scores themselves put us into higher rate categories.

Anyone know what's going on? Cause it seems like a total scam to me.

[Some Random Guy]

The credit reporting agencies have their own scoring methods, which are not alway true FICO scores.

[url]http://www.fool.com/News/mft/2005/mft05042902.htm[/url]

[tbrannies]

So...is there anywhere I can get the scores that the lenders have? Because I never would have applied for credit if I had had those "real" numbers in front of me.

[Some Random Guy]

try going to the credit reporting agency web sites. they will try to sell them to you - usually for less than $10.

I would work dilligently on improving yourcreidt for then next 4-6 months and then purchase a new score from Experian to see if you mad ea difference in the score.

If you just have your score, but not the credit report, go to annualcreditreport.com and get a free copy of your credit report form one or all 3 of the bureaus. Review the report for errors and follow their dispute process if necesary.

[tbrannies]

Thanks for the responses.

It's not that I was wondering how to get my score up or anything about my reports - it's just that when I got my report and scores from myfico.com they ranged from 704-752 (704 Experian, 729 Equifax and 752 TransUnion). Which should have put me in the top range for both the auto loan and mortgage (at the time, myfico.com had a little table on their site which listed interest rates according to your score range).

A few months ago when all the car companies were running their employee discounts, I decided to get a new car. When I went to my credit union for an auto loan, they offered me an interest rate of like 12%. I about fell out of my chair. I asked why the rate was so high and they said that my score barely met their minimum criteria for loans. I asked what score they had and they said 620 from Experian, which was the minimum for them - that's a difference of almost 85 points! I had my copy of what I had ran that morning and they shrugged their shoulders and said that they had different info. Needless to say, I didn't get a new car at that rate.

Then, my husband (whose scores are higher than mine) and I went to get approved for our new home mortgage, and again, we were offered 7% because of our "low" scores. The lender told us what numbers he had (using the tri-merge) and TransUnion was literally 150 points lower for my husband than the score we got from...I think he used TrueCredit.com. All of the other numbers were at least 50 points lower than what we showed. And he had for Experian, for me, 652. And this was two weeks later than when I went to the credit union for my auto loan - how could my score jump 32 points from what the credit union had - in two weeks?

Unless everyone's pulling numbers out of their butts, it doesn't make any sense to me. How there can be such huge discrepancies between the info I have, and the info lenders have? There are differences between my info and theirs and their own info with each other.

I mean, how can I even figure out what my score is if the lenders themselves all have different numbers? What's the point of trying to stay on top of my scores and reports, when it doesn't really matter because I am at the mercy of whatever number pops up on their screen? Should I just apply for a loan with a couple different lenders every year so I can see the range my score is in? It doesn't make a bit of sense to me and is extremely frustrating. I have great credit and scores till I go to get a loan, and then...not so much.

To be completely honest, it seems like a bit of a racket to me. It benefits the lender to give me a higher interest rate, so they say whatever number they want, and tack on whatever high interest rate goes along with that number.

I just wanted to vent. I'll try going directly to the reporting companies I guess. But it still smells funny to me.

[Ladynred]

OH, its definitely a racket driven solely but PROFITS -those they gain by charging you higher interest rates.

I think Equifax is the only one that gives 'true' FICO scores. TransUnion and Experian use whats known as FAKO scores - their own scoring model.

Your score isn't solely based on your payment history, though that IS a big part of your scores. Also factored in is the length of your credit history, the total amount of debt your carrying, the total amount of available credit you have and the total utilization of credit against your total available credit. Then you have your debt to income ratio too.

If your utilization is high - over 25%, then your scores are going to be calculated lower. If your debt to income ratio is too high, you'll be scored lower. If you have too much available credit, your risk assessment goes up as you COULD use too much and compromise your ability to pay. If you have too few or too many revolving accounts or installment accounts, it can hurt your scores.

You need to sit down and assess all these factors and see if anything jumps out at you. Work to mitigate those factors and try for a financing again at a later time.

[N Hampshire]

I'm having the same problem here in New Hampshire. Two credit unions show my scores much lower than scores I have purchased online. When Free Credit Report advertises "see what the lenders see", and we as comsumers don't, it's false advertising reeking of a class action lawsuit. A credit score purchased by comsumers should be the same as purchased by lenders. I understand a few points difference here and there but when the "point spread" is 85-100 points there's a serious issue.

When I asked the online companies I purchased from they informed me they bought directly from the "big three" credit reporting agencies. When tbrannies bought from myfico.com those scores should have been dead acurate. Federal Trade Commission is no help.

Anyone have any new ideas besides cleaning up credit reports that show no problems. One of the credit union folks I talked to said she had comsumers that had several credit cards maxed out that had better scores than mine. I have credit to spare, a lengthy credit history, no late payments, a reasonable debt to income level and scores sold to lenders still stink.