Credit Score is Limited
March 11th, 2011 | 
Author: In other words, you could drag your credit score from all three credit bureaus and find that they do not fit but not to each other, they are not the FICO score that your lender is accessing. “This is a real problem – many people do not simply the difference between FICO scores and other values,” said Ginny Ferguson, co-owner of Heritage Valley Mortgage of California.
“They think it’s all the same.”
Many borrowers to satisfy the lender, only to find that their FICO scores are 50-100 points below the generic guests to find online. This is actually a company, Fair Isaac Corporation developed the scoring system used by mortgage industry. FICO scores range 300-850. The higher the credit score, the less of a risk posed by them to the lender.
There are different types of commercial scoring models on the Internet. However, most lenders only FICO scores are your mortgage and loan pricing. Many borrowers are surprised when they go to the lender with a generic score, to the lender to find, says her FICO is much lower. “The consumer assumes the broker did something bad to her grades,” said Ferguson. “And of course this is not the case.”
Ferguson says that the typical FICO score is below the generic Internet score. She says that regardless of what is found on the Internet, the lender will report with the FICO to go from their source. Fair Isaac has begun to take note of the differences. In her own research, she found that FICO scores can be as much as 200 points lower than other scoring models.
Many credit-scoring sites also contain the fine print that indicates that guests are not “a FICO Score”. Others say that it is an example of how you could be viewed by a lender. Advisors say that the pursuit of your credit score is an important aspect of financial management. Consumers should understand that most scores are only an estimate, where it as credit.
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