About Free Credit Reports and Scores
Author: KATO
Posted: Thu Mar 18, 2004 10:42 pm
Post subject: About Free Credit Reports and Scores
2 CRA's sent free report, Equifax says no recent inquirys, no report. Is there any other way besides paying to get them to send my CR? Also, when you get a free CR can you pay for a FICO to be sent with it? Thanks
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Author: NightStar
Posted: Fri Mar 19, 2004 7:28 am
Post subject: About Free Credit Reports and Scores
Whenever I have called Equifax and scored a free credit report, it has not included an option through the phone system to add credit scoring.
And the online delivery, no longer provides free credit reports, the cheapest best deal that I know of is www.privacyguard.com $1 for 3 months unlimited access, I think you get a credit score here, but it is a different scoring model used.
Plus you have to be sure to cancel within 3 months otherwise they will charge you over $100 for the yearly fee.
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Author: Guest
Posted: Fri Mar 19, 2004 11:01 am
Post subject: About Free Credit Reports and Scores
Thanks NightStar, If the scoring model is different and not a true FICO,why would you want it?
Author: NightStar
Posted: Fri Mar 19, 2004 2:31 pm
Post subject: About Free Credit Reports and Scores
There is no one true FICO score, all 3 CRAs sell Fair Isaac Scores to consumers & creditors, what complicats this even further is that there are various models used for different reasons.
So no one credit score to the next is going to appear the same, and not all creditors buy Fair Isaac scores, they also purchase and use regular scoring models created by the credit reporting agencies themselves.
The score is just a tool, to learn from, the score itself is not what matters, what matters is the reason codes, or reason which it gives for why the score was not better. It is giving advice on how to improve the score, then go back and repull again later to see what the next reason codes are to keep improving on.
The scores which the credit reporting agencies sell to consumers, are mostly developed by the credit bureau themselves. I know myfico sells one model used by the mortgage industry... but that is not a sure thing going to a lender and expecting them to pull the same model, they could be using a different one all together.
Example Experian:
They sell Auto Model, Fair Isaac Risk Model, Installment Model, Personal Finance Model, Credit Card Model, Bankruptcy Model... and the list goes on.
How the model works is that it is specifically developed for that one particular industry's need. Like Auto model, when a dealership pulls a credit score on you, it is comparing you against everyone before you who has had an auot loan, it is looking at the trends, what types of accounts they had and how they paid on their accounts, it is off of what others before you have done that determines if you get approved.
Like Bankruptcy model, this one actually scores like a baseball percentage, and the lower the score the better, but it is looking at everyone who has filed bankruptcy and making a caculated guess on what the odds are of you filing bankruptcy if you are high risk.
Plus the score ranges are different per model, some go 300 to 850 and other might be 350 to 900... so again there is an offset that you can't count on.
Myself I usually if I am going to buy a credit score, I just purchase it directly from each individual bureau, and then allow for 20 to 50 points difference up or down between what I see and what a lender may see. That I think is about the closest you are going to get on these things.
I sure don't think it is worth paying what myfico charges, just to look at one industry model. But that is just to give you an idea of the complexity of credit scoring.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: KATO
Posted: Fri Mar 19, 2004 2:56 pm
Post subject: About Free Credit Reports and Scores
Very usefull info. In all the posts I have read no one has explained that.
Thanks Again
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: NightStar
Posted: Fri Mar 19, 2004 4:29 pm
Post subject: About Free Credit Reports and Scores
Myself I work for a credit bureau (reseller) of credit reports to businesses, so I see the products that they use when they set up their options for credit scoring.
It is flustrating to me when I keep seeing people promote Equifax as the one true FICO, lol Kept seeing that one forever,
But really all three do, common names for the scores are:
Experian - Fair Isaac
Equifax - Beacon
TransUnion - Emperica
There are even more then just this, like I said the credit reporting agnecies buy scores from other companies as well as create their own.
Also each model has different set reason codes they give, so if you ever got your hands on a code list, it would only be good for the model it was created for. On the creditor side it is coded, the bank sees one 3 digit number plus up to 4 additional codes numbers.
Reason codes are the excuse the bank gives you for why you where declined credit so it serves two purposes.
Ok, like Equifax for example:
* Number of Accounts open - last 2 years... so this one would mean you have too many open accounts.
* Number of accounts showing 30/60 day late payments.
* Number of revolving bank accounts paid as agreed... this one would be for a prime lender picking over what they think you should have established before applying with them.
* Number of inquiries in the last 6 months... banks consider you a risk if you have applied for too much credit, regardless if you got the credit or not.
* Number of personal loan company (installment) accounts.... some lenders view personal finance companies as negative, because it is not sound financial practice to be dealing with these companies because of the higher interest rates they charge.
* Utilization of available credit on all accounts... meaning they consider you to have too much debt already.
This is just a few of the possible codes you might see if you receive a adverse action notice from a lender. Along with the contact information for the specific credit reporting agency they pulled from.
I can tell you that their are so many models of scores, that not all of the lenders are even up on what is best to use on their side. And I get a lot of calls from loan officers wanting learning material for understanding just the basics of how the scores work.
They usually have underwriting that tells them that above such and such score is acceptable, but they don't know why. So we try to fill in the gaps for them to understand and be able to use the data properly.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Thu Mar 18, 2004 10:42 pm
Post subject: About Free Credit Reports and Scores
2 CRA's sent free report, Equifax says no recent inquirys, no report. Is there any other way besides paying to get them to send my CR? Also, when you get a free CR can you pay for a FICO to be sent with it? Thanks
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: NightStar
Posted: Fri Mar 19, 2004 7:28 am
Post subject: About Free Credit Reports and Scores
Whenever I have called Equifax and scored a free credit report, it has not included an option through the phone system to add credit scoring.
And the online delivery, no longer provides free credit reports, the cheapest best deal that I know of is www.privacyguard.com $1 for 3 months unlimited access, I think you get a credit score here, but it is a different scoring model used.
Plus you have to be sure to cancel within 3 months otherwise they will charge you over $100 for the yearly fee.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Guest
Posted: Fri Mar 19, 2004 11:01 am
Post subject: About Free Credit Reports and Scores
Thanks NightStar, If the scoring model is different and not a true FICO,why would you want it?
Author: NightStar
Posted: Fri Mar 19, 2004 2:31 pm
Post subject: About Free Credit Reports and Scores
There is no one true FICO score, all 3 CRAs sell Fair Isaac Scores to consumers & creditors, what complicats this even further is that there are various models used for different reasons.
So no one credit score to the next is going to appear the same, and not all creditors buy Fair Isaac scores, they also purchase and use regular scoring models created by the credit reporting agencies themselves.
The score is just a tool, to learn from, the score itself is not what matters, what matters is the reason codes, or reason which it gives for why the score was not better. It is giving advice on how to improve the score, then go back and repull again later to see what the next reason codes are to keep improving on.
The scores which the credit reporting agencies sell to consumers, are mostly developed by the credit bureau themselves. I know myfico sells one model used by the mortgage industry... but that is not a sure thing going to a lender and expecting them to pull the same model, they could be using a different one all together.
Example Experian:
They sell Auto Model, Fair Isaac Risk Model, Installment Model, Personal Finance Model, Credit Card Model, Bankruptcy Model... and the list goes on.
How the model works is that it is specifically developed for that one particular industry's need. Like Auto model, when a dealership pulls a credit score on you, it is comparing you against everyone before you who has had an auot loan, it is looking at the trends, what types of accounts they had and how they paid on their accounts, it is off of what others before you have done that determines if you get approved.
Like Bankruptcy model, this one actually scores like a baseball percentage, and the lower the score the better, but it is looking at everyone who has filed bankruptcy and making a caculated guess on what the odds are of you filing bankruptcy if you are high risk.
Plus the score ranges are different per model, some go 300 to 850 and other might be 350 to 900... so again there is an offset that you can't count on.
Myself I usually if I am going to buy a credit score, I just purchase it directly from each individual bureau, and then allow for 20 to 50 points difference up or down between what I see and what a lender may see. That I think is about the closest you are going to get on these things.
I sure don't think it is worth paying what myfico charges, just to look at one industry model. But that is just to give you an idea of the complexity of credit scoring.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: KATO
Posted: Fri Mar 19, 2004 2:56 pm
Post subject: About Free Credit Reports and Scores
Very usefull info. In all the posts I have read no one has explained that.
Thanks Again
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: NightStar
Posted: Fri Mar 19, 2004 4:29 pm
Post subject: About Free Credit Reports and Scores
Myself I work for a credit bureau (reseller) of credit reports to businesses, so I see the products that they use when they set up their options for credit scoring.
It is flustrating to me when I keep seeing people promote Equifax as the one true FICO, lol Kept seeing that one forever,
But really all three do, common names for the scores are:
Experian - Fair Isaac
Equifax - Beacon
TransUnion - Emperica
There are even more then just this, like I said the credit reporting agnecies buy scores from other companies as well as create their own.
Also each model has different set reason codes they give, so if you ever got your hands on a code list, it would only be good for the model it was created for. On the creditor side it is coded, the bank sees one 3 digit number plus up to 4 additional codes numbers.
Reason codes are the excuse the bank gives you for why you where declined credit so it serves two purposes.
Ok, like Equifax for example:
* Number of Accounts open - last 2 years... so this one would mean you have too many open accounts.
* Number of accounts showing 30/60 day late payments.
* Number of revolving bank accounts paid as agreed... this one would be for a prime lender picking over what they think you should have established before applying with them.
* Number of inquiries in the last 6 months... banks consider you a risk if you have applied for too much credit, regardless if you got the credit or not.
* Number of personal loan company (installment) accounts.... some lenders view personal finance companies as negative, because it is not sound financial practice to be dealing with these companies because of the higher interest rates they charge.
* Utilization of available credit on all accounts... meaning they consider you to have too much debt already.
This is just a few of the possible codes you might see if you receive a adverse action notice from a lender. Along with the contact information for the specific credit reporting agency they pulled from.
I can tell you that their are so many models of scores, that not all of the lenders are even up on what is best to use on their side. And I get a lot of calls from loan officers wanting learning material for understanding just the basics of how the scores work.
They usually have underwriting that tells them that above such and such score is acceptable, but they don't know why. So we try to fill in the gaps for them to understand and be able to use the data properly.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 10:28 AM
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