The score my lender see’s is different than what I get on myFico. Which is correct?

[Joice]

I use myFico.com to monitor my credit scores. Last week I applied for a car loan, but when they pulled my scores – they were lower than the ones I got at myFico. I’m confused. Which scores are correct?

[Tracy Winters]

They are all “correct”

The scores you get on myFico.com are different than the ones car dealers use. Even though they are all Fico scores, they use different formulas.

As a consumer – the only type of score you can get is a generic version of Fico called ‘ Standard’. There are two more common Fico versions:

• ‘Auto Enhanced‘ – used by car dealers.
• ‘Factual’ – used for mortgage purposes.

Besides these versions, many financial institutions have their own credit grading system – grading for a home loan, car loan or credit card will be different. Furthermore – even within the same category – Chevy might have a different scoring system then ford.

They have all done their own proprietary analysis system to determine what kind of credit activity puts someone at a higher risk for default.

So you see – they are all “correct”. Also, keep in mind that credit scores are just a small part of any lending decision. In most cases what actually appears on your credit report is much more important, as well as other factors like your debt-to-income ratio etc.

For more information see understanding-fico-scores.html.

[Janie]

Starting April 2015, you can get your Auto-Enhanced FICO
myFico.com is offering consumers for the first time ever to view ALL of the FICO versions, not just the generic one.

So now, you can know your Auto-Enhanced Fico B4 you head to the dealer’s… More power in your hand…

Here’s the link to the original post: myFICO.com releases new FICO versions for consumers

[Author]

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