FICO score question

[eliza61]

I got my free annual credit report from Trans union. In NJ you can get a free copy from each of the credit reporting agencies once a year so I usually try and get one every 4 months. Anyway I also get a free one from American Express, I always get the FICO score with the reports, any way the FICO scores are totally different. I mean there's a 100 point spread.

How is this possible? How can you figure out which one is right?

 

[ctinct]

The one you got from Amex is a FAKO score, not a FICO score. Many people pay for scores from third parties, but they are not your official FICO scores, and they do vary wildly. I think the website you need is Myfico dot com. Pretty sure they are $15.95 or so, but search for a discount code on the web first.

ETA: The scores you can get from myfico will be different from each other, also, but they are your "official" scores. Each of the three credit reporting agencies use a different model, plus your actual credit reports usually have different info on them. For example, my mortgage only shows on two of my three reports. Also, I'm pretty sure TransUnion no longer lets consumers see their OWN scores, which I think is extremely unfair.

 

[happymommy]

In any state, you can get your credit report free from all 3 major agencies (experian, trans union, and equifax) once a year. More if you do a fraud alert (I've had to do that a few times).

The main thing to look at is the open accounts in your name. Make sure that you opened them, and there is no difference in the accounts and what you actually have. That way, if there are accounts you don't use, and they are still open, you have the option to close them if you choose.

The "score" is important if you are applying for credit, such as a mortgage or a home equity line of credit. Otherwise, I wouldn't worry about it.

Some say it's good to keep lines of credit open, even if you don't use them, as it's good for your score. I honestly don't feel comfortable with that personally, as we don't like to owe money (we have no debt). So, if I have a card I don't use, I close the account.

 

[eliza61]

So nice that they make this info easy to understand. aaargh.

 

[diputs]

The "score" is important if you are applying for credit, such as a mortgage or a home equity line of credit. Otherwise, I wouldn't worry about it.

Unfortunately this isn't true anymore. They now use your FICO score for Home Owners Insurance, Car Insurance and Medical Insurance. And it's not just for Mortgages, but also if you are trying to rent a place as well.

The reliance on the FICO score has gotten out of control. It's not just used as an indicator of your credit history any longer.

 

[mrsg00fy]

The scores that you as the consumer can buy are based on a 1000 point scale. The FICO scores used by a bank are based on an 850 point scale.

I realized this a couple of years ago when I paid for my FICO score. The score was not in line with the 850 point sacle. Had I realized this beforehand, I would never have paid for my score.

The last few times we have applied for credit, once for a car loan and once for a refinance, I have asked the processor/ salesperson what my score was and they told me roughly what the score was.

 

[diputs]

The scores that you as the consumer can buy are based on a 1000 point scale. The FICO scores used by a bank are based on an 850 point scale.

I realized this a couple of years ago when I paid for my FICO score. The score was not in line with the 850 point sacle. Had I realized this beforehand, I would never have paid for my score.

The last few times we have applied for credit, once for a car loan and once for a refinance, I have asked the processor/ salesperson what my score was and they told me roughly what the score was.

The scores I get from Trans Union, Experian and Equifax are base on the 850 scale. I just double checked.

 

[DISdreamin']

The scores I get from Trans Union, Experian and Equifax are base on the 850 scale. I just double checked.

The most recently I have looked, I don't think you can get your score from Experian any more.

As far as all scores you can buy being based on a 1000 point scale, I don't believe this is true. A while back I got my FICO scores from myfico.com and they appeared to be out of 850 - at least that is what all the info with them said.

Lastly, offhand I don't recall the free score that came as an AmEx perk being branded as a FICO score, so I doubt it was! That might explain the spread. The only scores I would believe were the ones from myfico - unless you're inquiring directly with a creditor who has access to your scores. My scores did have a big spread (about 30+ points last time I looked) but 100...dunno!

ETA: Yeah, that about your FICO score being important for your insurance rates! What a PP said is exactly true, at least with the insurance company we use.