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)Subscribe to CommentsComment