Tuesday, April 16, 2013

Why Are My Credit Scores Different Than The Lender's?

Why are the credit scores you get from the credit bureaus yourself often quite different than the scores used by mortgage lenders?  

The answer is simple.  The scores you get yourself are generally VantageScores, which are based on a scoring range of 501-990.  The scores that mortgage lenders use are FICO scores, which are based on a scoring range of 350-850.

The three credit bureaus (Experian, TransUnion, and Equifax) got together about five years ago and invented the VantageScore, hoping to get a bigger piece of the multi-billion dollar credit scoring market than they already had.  Lenders said, "Forget it - we're happy with the FICO scores." 

The bottom line is that you are always going to have a higher score if you are looking at a VantageScore credit report rather than a FICO score credit report.  It can be very misleading to consumers, but that's the way it works.

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!

Make sure you check out our web site:

By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

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