Checking your credit score before/during/after a credit transaction
Before applying for a new auto loan, credit card, or mortgage transaction you need to make sure that your credit score is where it needs to be.
There are many places to check your credit online but not all are used by the lenders. Throughout my mortgage experience there had been many borrowers who would bring a mortgage credit report that had credit scores that were WAY different than mine. At first I wondered why the huge discrepancy, then I realized that there's a lot of credit providers online that use the OLD credit scoring system.
Every year or 6months FICO comes out or updates their Credit Scoring model. When I would look at my model and the client's model, there's were usually 1 or 2 models older than mine. Most lenders want the latest model to make sure they're going to be lending hundreds of thousands of dollars to a viable borrower. Before some lenders MAY have taken a FEW older scoring models, but now everyone is up to par. They would rather spend a few extra bucks on the new model than waste hundreds of thousands of dollars on a failed mortgage.
Free Credit Report
MyFico is the only place where I would recommend someone to check their credit report and credit score. Make sure to check your credit before shopping around for rates or you'll be in for a rude awakening!
There are many places to check your credit online but not all are used by the lenders. Throughout my mortgage experience there had been many borrowers who would bring a mortgage credit report that had credit scores that were WAY different than mine. At first I wondered why the huge discrepancy, then I realized that there's a lot of credit providers online that use the OLD credit scoring system.
Every year or 6months FICO comes out or updates their Credit Scoring model. When I would look at my model and the client's model, there's were usually 1 or 2 models older than mine. Most lenders want the latest model to make sure they're going to be lending hundreds of thousands of dollars to a viable borrower. Before some lenders MAY have taken a FEW older scoring models, but now everyone is up to par. They would rather spend a few extra bucks on the new model than waste hundreds of thousands of dollars on a failed mortgage.
Free Credit Report
MyFico is the only place where I would recommend someone to check their credit report and credit score. Make sure to check your credit before shopping around for rates or you'll be in for a rude awakening!
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