Why is my credit score different from what the lending is seeing?

Mortgage and Lending with TJC Mortgage, Inc.

Why is my credit score different from what the lending is seeing?

There are a few misunderstandings happening recently concerning the credit rating range that usually happens when consumers pull their own credit opposed to when a lending institution pulls a credit report. I think this really is brought on by the recent introduction from the VantageScore as well as the FICO rating which we all have been accustomed to using over the years. I’ll briefly describe the primary variation between the two in order to clean up these particular misunderstandings.

VantageScore range vs. FICO score range
VantageScore range: 501-990
FICO range: 300-850

With viewing this, you can see the two ratings overlap. This really is exactly where, I think, the actual issues about the existence of FICO scores over 900 are coming from. When a borrower is given their own FICO ratings through the loan provider, many people don’t give consideration which brand they are getting simply because they don’t know there is a difference. It’s easy to understand the frustration; however it’s always best to have a FICO score when talking to a lender. I don’t want to misquote an individual because a borrower is using a VantangeScore instead of our FICO score.

With this being said, if you have any more questions as to why your credit score is different from the lenders, give me a call at 205-776-8402. 

Comments (2)

Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Chris - This is a never ending explanation or the one about why can't I use the report they ran and why do I have to run another one yada yada yada.  LOL  Anyway, educating the borrower is a vital part of our job and a part that I actually enjoy (most days) because it does allow us the opportunity to shine too! 

Welcome to AR Chris, I found you through Tom's introduction post.  :)

Nov 03, 2011 07:50 AM
Holly Weatherwax
Associate Broker, Momentum Realty - Reston, VA
A Great Real Estate Experience

Chris, Welcome to ActiveRain! I really like this post. This is the kind of information that consumers, and Realtors who will refer consumers, will respond to.  Keep up the good work!

Dec 12, 2011 10:22 AM