Mortgage and Real Estate Blog


Why your credit score is not your credit score??

Why your credit score is not your credit score??

Minneapolis, MN:  Everyday talking to clients, they tell me they know what their credit score is. Everyday I tell them they are correct, but yet they are wrong for my new mortgage loan purposes.

When you get a consumer obtained credit report from one of the big three (Experian, EquiFax, or Trans Union), or you get your score from, or even on your Discover Credit Card Statement, the score you are almost always looking at is known as the Advantage Score.

Different credit industries use different scoring models.  So your consumer obtained score model is different than a mortgage lender obtained score, which is different that a credit card company obtained score.

They may all be a FICO scores, but a different model. 

How confusing is that?

It is sort of like saying you bought a Ford.  Great... but what model Ford?  Did you buy a Ford Focus, or did your buy a Ford F-150?

You got your FICO credit score. Great, but did you get the Advantage Score, Beacon Score, Classic 5, or something else?

Huge Credit Score Confusion

​A long standing challenge for consumers has been obtaining "mortgage FICO" credit scores. This has now changed. Recently announced that it now makes all industry specific FICO scores available to consumers. This includes mortgage, auto and credit card scores!

The goal is to give consumers greater understanding of their credit scores. For home loans it is straight forward, as there is only one score model available. Unfortunately, there is still room for confusion. Each bureau provides up to 5 scores. This totals 15 different scores across all three reports.

No matter how explicit the instructions, the average consumer may have little or no idea what score model the type of creditor they are applying with is using.

The good news here is that residential finance scores are now available so you can have greater clarity on your prospective borrower without potentially impacting their scores​


Learn more about credit scores on my main web site.

Joe Metzler is a Senior Mortgage Loan Officer for Minnesota based Mortgages Unlimited. He was named the 2014 Minnesota Loan Officer of the Year, and provides Home Mortgage Loans in MN, WI, and SD. He can be reached at (651) 552-3681

2 commentsJoseph Metzler • March 03 2015 09:55AM
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