Is the score you think you have a real score? Did you look at your Equifax score that ranges from 280-850, or the Trans Risk model of 300-850 or the Vantage Score range of 501-990? Confused? You should be as there are lots of credit models that are in the mix when looking at one’s overall credit rating.
There’s not a week that goes by where clients and I will start to talk about a loan, and the client just pulled their own score, only to find out that when I pull their score it is lower. I found a good article in CNN Money explaining why this happens. Here’s a quick excerpt:
“All of these different scoring models can make it hard to know how you’re actually being assessed by a lender. While most lenders look at a FICO score to gauge an applicant’s risk, consumers typically attain non-FICO scores from consumer websites and credit reporting agencies.”
Since the FICO model is owned and trademarked, if an online company that sells you your score does not want to pay for the rights to use the FICO model, they simply develop their own. As mentioned above, it’s important to keep in mind that the score they sell you won’t be the score lenders use to qualify you for a home loan.
By no means am I a credit expert, but it is a subject I have been studying since I started in the industry. I’ve put together a quick two pager outlining how credit works if you would like to learn more on the topic. I’m always around if you’d like to send me your credit questions and I can pull your “official” credit report should you like to learn more about the state of your credit.
As always, it’s important to understand your credit score and manage it, so that if you ever want or need access to credit you can have it on the best terms possible.
Have questions? Post them in the comments!