Over the years I have received many statements from clients telling me what their credit scores are. In return I would have to explain to them that there are different credit scoring models created for different industries. Yep, the auto industry has a different credit criteria as the housing industry and the same goes for the credit card world. The same is true for the “Free” credit reporting scores the public may get. Now we get news the Credit Reporting Agencies have been lying to us! The full article is in the link below.
So what I would like to impress upon people is that while the Free credit reports people receive will give them an indication of their credit score, it will not give us the actual score that the mortgage company will use because they have their own model.
Here’s some additional information regarding the different credit scoring models.