If you are like me you track your credit score with one of many online credit score services. But when you go to obtain a home loan you find they your score is any from 30 points to 100 points off!! And this is where many people get frustrated or even a little pissed off. So what's the deal?
There are 2 main reason for this
1st : In 2006, the 3 major credit bureaus ( Equifax, Experian & TransUnion) created what is calls the Vantage Score which is a consumer credit-scoring model. The Vantage score model, in my opinion came out at the perfect timing as the housing market was crashing. This allowed people to access consumer credit even with mortgage credit issues.
There has been a few different updates to this consumer credit-scoring model but historically the scoring can go above 900 where your FICO score used for a mortgage only goes to 850 max.
2nd: For a mortgage your lender must pull all 3 credit bureaus and only use the middle score for qualifying & pricing. Some lenders allow for no credit score, 1 or 2 scores so even if you don't have a score don't let that stop you from having a conversation with your lender.
The bottom line is if you think your score is incorrect I recommend reviewing it with your lender to see if there is anything incorrect.
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https://finance.yahoo.com/news/vantagescore-vs-fico-score-difference-150323240.html
VantageScore is a consumer credit-scoring model, created through a joint venture of the three major credit bureaus -Equifax, Experian, and TransUnion-. The model is managed and maintained by an independent company, VantageScore Solutions, LLC, that was formed in 2006 and is jointly owned by the three bureaus.[1]
