When you prepare to apply for a mortgage, you may want to review your credit scores before your lender does. You should be aware, however, that the credit score you review may differ from the one your lender will pull.
Types
There are two main types of credit scores: consumer credit scores, which are calculated by the credit bureaus, and FICO scores which are calculated by the Fair Isaac Corp.
Facts
The annual free credit report you are entitled to from the credit bureaus contains a consumer credit score, while the credit report your lender pulls will reflect a FICO score. This can result in your score being either lower or higher when pulled by a lender.
Misconceptions
If you pulled your own credit report from a third party provider such as freecreditreport.com, the score you receive won't be a consumer credit score or a FICO score. Third party credit report providers can only provide you with a estimated score, which may be wildly inaccurate.
Options
You can pull the same credit scores your lender does by purchasing your credit reports and scores directly from MyFICO.com. You may, however, only purchase scores from Equifax and TransUnion. Experian will not sell FICO scores to individuals.
Considerations
Mortgage lenders take more than just your credit score into consideration when evaluating your loan application. The primary aspects of your credit history such as types of accounts you have and your payment history will be the same on both types of credit report.
0 comments:
Post a Comment