Is Your Credit report scores really your score lenders look at??

Real Estate Agent with The Indy Realty Shop

OKay, I have bought over 50 properties that I own and rent out over the past 12 years and have closed hundreds of deals for clients as well.


I always thought the credit score you obtain from all three bureau's are your "credit score".  I have found out differently.


I have a client that had a middle score in the high 570's.(as pulled by the lender he was going to use)  He insisted his credit report he pulls with the "credit monitoring program" he uses says his middle score is almost a 645 and his lowest score is high 590's.  I was told by the lender that they take the "base credit score" from all three credit bureau's and then they put their own mathematical formula on these scores to "make" their own credit scores that they use to determine whether they will lend or not.  And each lender is different, one will put more weight on one thing then another will.  


Is this true?  I always had an issue with credit bureau's, as I don't feel they can "make the rules" on what is considered  good or bad credit but they won't tell anyone exactly how they score things!  Now I find out the main score you pull on your personal credit report isn't really a valid number, it's just a "baseline" number.


How many times have you heard a mortgage company say "I can get you 90% financing with a credit score of 650 or 660, etc."?  So what does that number mean?  Does it mean anything at all?  Is is the "base" score they are talking about or the bank they use and their "massaged mathematically applied credit score they make up"?


I have now been told that when you buy a car, they will apply a different formula then if you buy a house, or if you buy a tv or anything!  So basically, we are once again in the dark, we have no idea really what are "valid" credit score is.  

Maybe this is why one lender can get a deal closed while another one can't?  Because the credit score they see is different!


How frustrating..




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Jo Olson
HOMEFRONT Realty - Kettle Falls, WA
Retired - HOMEFRONT Realty @ LAKE Roosevelt
I think the whole "fico" is a mess right now - there isn't any standard really and as a consumer I can "play with it" and get it to move by doing some pretty simple things!! My son who is 25 called and was all in a tizz because his score had dropped from 745 to 720 (pretty good score I think) but he was in a panic. I told him to call his 2 credit card companies and have his credit limit raised so that he was showing only 30% of debt compared to available credit. He did and they did. Next month his score was at 770. All a joke really!!!
Dec 01, 2007 05:05 AM #1
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time
Craig, I found this out about 2 years ago. I worked on my score for about a year trying to get to the mid 700s. I finally did and was so excited until my bank pulled it and said it was 710. I was really upset over it. But alas it's true. The credit bureaus have different scores based on what that particular client has given them for parameters. So I guess it really is just one big mystery.
Dec 01, 2007 08:19 AM #2
Gary Barnett
Home Matters - Indianapolis, IN
Home Matters Property Stylist Group, Indianapolis
Craig, it seems like the bureau's have been loosing favor with consumers more and more every year.  Do you see a time that something different will take their place or is this just one of those bureaucratic things that are here to stay?
Dec 12, 2007 04:01 PM #3
Tony Grego, 317-663-4173 #1 Trade Association for Alternative Inv
REISA - 317-663-4173 - Indianapolis, IN

Hey Craig!

Great Post. Yes, you will never figure the patterns out. Depending on what your buying will be the CB the compnay uses. Mortgage enhanced, Auto enhanced, etc.

While not as common now as when subprime was a bigger part of the business. Different credit suppliers have different scores for the enhanced features. Yes, two or three different credit vendors for mortgage enhanced will give different scores. The game was/is who can you get the best score with regardless of what the report says.




Apr 17, 2008 08:28 PM #4
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