What is your TRUE Credit Score:

So what is your TRUE CREDIT SCORE and how can you get it?  Did you know that The Consumer Financial Protection Bureau ordered TransUnion and Equifax to pay more than $23 million in fines and restitution “for deceiving consumers about the usefulness and actual cost of credit scores they sold to consumers.”  The problem, according to the CFPB, was that TransUnion and Equifax misled consumers by suggesting that the educational credit scores they offered were the same scores lenders used to make credit decisions. According to the CFPB, however, these scores were “rarely used by lenders to make credit decisions.

 

The orders explained that the credit score models most often used by lenders are those developed by Fair Isaac Corporation. You may know these scores by their common name, FICO scores. In contrast, the scores offered by TransUnion and Equifax used proprietary scoring models, sometimes referred to as “educational credit scores.” The name comes from the idea that these scores help educate consumers about their credit scores generally.  Since 2011 FICO has come in more than 60 different scoring models.

Credit Scores used by Lenders:

This will depend on what kind of Financing you are seeking:

As Fair Isaac notes:

You have more than one FICO Score—depending on what type of credit you’re seeking, your lenders may evaluate your credit risk using different FICO Score versions. Auto lenders, for instance, often use FICO® Auto Scores, an industry-specific FICO Score version that’s been tailored to their needs. Most credit card issuers, on the other hand, use FICO® Bankcard Scores or FICO® Score 8.  The most widely used Credit Score used by Lenders is the FICO Score 8:

Fair Isaac goes on to provide the following advice:

  • Financing a new car: FICO® Auto Scores, the industry specific scores used in the majority of auto financing-related credit evaluations.
  • Getting a new credit card: FICO® Bankcard Scores or FICO® Score 8, the score versions used by many credit card issuers.
  • Getting a mortgage: Base FICO® Score versions previous to FICO® Score 8, as these are the scores used in the majority of mortgage-related credit evaluations.

When looking for a mortgage here are the 3 primary version that most Lenders choose as you TRUE CREDIT SCORE:

  • Equifax Beacon 5.0
  • Experian/Fair Isaac Risk Model V2SM
  • TransUnion FICO Risk Score, Classic 04

Those are technical names for FICO Scores 5, 2 and 4, respectively.

So you may ask is it best to find out my EDUCATIONAL credit scores or should I find out what my actual score in relation to the Loan or transaction I am seeking:  The 3 top FREE credit score reporting companies out there right now are Quizzle, Credit Karma, and Credit Sesame.  However, the scores that are represented on their systems are NOT based on any version of the FICO scoring algorithms.  They do provide some useful information but if you want to know your TRUE CREDIT SCORE I would highly suggest using a system that will give you the actual numbers that you are seeking.

Below I will provide you with links to get 20% off your TRUE CREDIT SCORE

Get 20% off your Experian credit report at myFICO

Get 20% off your TransUnion credit report at myFICO

Get 20% off your Equifax credit report at myFICO

Get 20% off your 3 bureau credit reports at myFICO

Conclusion:  If you are looking to get your TRUE CREDIT SCORE that will be used by the Lender that you are using, I would highly suggest you use myFICO instead of the free credit scoring companies.

 

 

 

Regulatory Information: Nationwide Multistate Licensing System's Consumer Access Website" (www.nmlsconsumeraccess.org), Premier Financial Services, Inc. NMLS #266214. The State of Illinois | Division of Banking located at 100 W Randolph St, Chicago, IL 60601 (312) 814-4500 | NMLS # 266214 Dan Frio NMLS 246527