Jason pulled his FICO® score from Experian.com. It said 604. He showed that score to his real estate agent as he started looking for a house and she told Jason that he needed to improve his credit score before he could purchase a home. She referred him to a loan officer who helped consumers raise their FICO Scores. The loan officer then pulled his Experian FICO Score and it was 690. What!?!?!
An 84 point difference between what Experian.com said and what his lender reported.
Thinking he would not qualify for a mortgage, Jason was depressed and was on the verge of giving up. 604 is what he thought his FICO score was. Knowing that he needed at least a 620 FICO Score, Jason felt hopeless.
The Problem with Experian.com
Jason Discovered something very critical to his (and anyone’s) credit rating. He was given a FICO Score that is substantially different, is not used by lenders, and misinforms many consumers.
The Experian.com score is a “non-lender” FICO score called the FICO 8. Any consumer would be hard to find any lender who uses that particular FICO Score for their loan qualification. FICO has produced over 50 score models and most of them are not used by lenders.
Mortgage lenders use a FICO Score called the Classic FICO Score. As we all can see there is almost always a difference, and too often, this difference misleads consumers. It can be very costly not knowing your actual lenders FICO Scores.
84 Point Difference
84 point difference is huge. Any difference is misleading. Just because someone says they are offering a FICO score gives no value to that number. You must look for the Classic FICO Scores that mortgage lenders use.
Classic FICO Scores are found at www.MyCreditPlan.org.