Understanding the Differences in Credit Scores
There are many credit score models available to consumers that provide different credit assessments based on the same credit information. How does that happen?
Creates a lot of confusion
Got to CreditKarma.com and you get a 704 TransUnion credit score. Go to Experian.com and the TransUnion score shows a 687. Go to a mortgage lender and that same TransUnion score is a 671.
There are two questions you need to answer.
1. What credit score model do lenders use?
2. Where do you find those credit scores?
FICO Classic Credit Scores
The FICO Credit Scores are used by most lenders. Here is a breakdown by the types of lenders:
Type of Lender Percentage that Use Classic FICO Scores Score Maximum
Mortgage Lenders 100% 850
Home Equity / 2nd Mortgage Lenders 100% 850
Auto Lenders 70%* 850
Credit Card Companies 67%* 850
Type of Lender Percentage that Use FICO 8 Auto Score model
Auto Lenders 30% 900
Type of Lender Percentage that Use FICO 8 Bankcard Score model
Credit Card Companies 33% 900
* Estimate given by credit bureau companies who provide credit reports and credit scores to lenders.
Tracking Your Lender’s FICO Classic Credit Scores
Where do you find the FICO Classic credit scores? There are only three places.
- My Credit Plan or any 501 (c) (3) non-profit credit counselor.
All other scores provided to you are inaccurate and too often provide misleading information. For this reason, it is best to follow your Classic FICO Scores through MY Credit Plan.