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Credit Score Question

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Deacon92

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So the wife and I were trying (key word) to pre-qualify for a home loan. Both of our names are on all the other big loans and have been for the last decade or so.

So we are told by two banks, we can't put your wife on the loan becuase her credit scores are too low. They give me my scores, pretty good, we'd love to work with you on the loan....
And they give us her scores..Not good.

Something seems off, so she pays the 30 bucks to have a copy emailed to her from each agency. And it turns out what the agency sends to us is about 80-100 points higher than what both banks were saying. So this takes a couple of weeks to settle out. We go back to the backs with her copies of her credit report, and try to pre-qual again. This time they come back with even lower scores than they had the first time. Now 100 -110 points lower, than what we got directly from Transunion, Equifax two weeks earlier.

So anyone with superior information of loan process and credit want to take a guess at what's going on?
 
I worked in the mortgage department of a credit union for a summer. We would use the middle number as reported by Transunion, Equifax, and Experian to determine our interest rates, etc...

It's very strange that you are seeing such a disparity.

edit: I think banks have leeway with how they do this. They could be using the lowest score. Did you check Experian?
 
annualcreditreport.com

You are entitled to check each credit agency once per year. So if you want to see what is on your credit for free, use that. It's the credit agencies collective website, so no tricky gimmicks like freecreditreport.com


Doesn't give you your number but it will tell you all the good and bad things on your credit.
 
Refinanced my mortgage through Chase in November and ran into a similar situation - the scores for both my wife and I were lower than what we observed from Equifax. Granted, only about 30-40 points lower. Chase claimed that they didn't use the bureaus, rather had their own "internal" model. When pressed on it, they were cryptic, with both the mortgage rep and loan processor saying they themselves didn't understand how the quants in the credit division calculated it.

In retrospect, I think it might have been a rate grab on their part, but we were stuck, we were underwater and barely qualified for Chase's HAMP program (even had to bring some money to get to 125% LTV) - so while we got a significant reduction in rate (and I reduced the term as well), it was still about 50 basis points higher than what "market rates" were being reported.

ETA: Not sure if you are going for a re-fi or straight home loan, obviously my case applies to the re-fi - seems for a straight out loan app, they'd have to rely on the credit bureaus...
 
IslandDeac said:
annualcreditreport.com

You are entitled to check each credit agency once per year. So if you want to see what is on your credit for free, use that. It's the credit agencies collective website, so no tricky gimmicks like freecreditreport.com


Doesn't give you your number but it will tell you all the good and bad things on your credit.
Click to expand...

do you only get one chance to do this per year overall or is it once a year per agency? i.e. could I check one now and another in 4-5 months?
 
For us it is that each of the three is off by a hundred points or so compared to what the bank is saying the agency reported. The two banks (Wells and Suntrust) are actually consistent with each other, but when we get the report from each of the agencies, we see her scores being much higher..

And now I'm being told the house she wanted is under contract. She will not be a happy camper....:confused:
 
hmm, glad I checked one of those. there's an account there that isn't mine. that can't be good.
 
I've never actually checked my credit score. I assume my credit is good, but I've never looked at what the number is.
 
I think it is a damn shame that there isn't an easier way to look at your credit scores. It is such an important piece of information that I don't know why there hasn't been some type of government intervention into the process.

Annual credit reports from the 3 reporting bureaus are great and all, but so much importance is placed on the score that it is almost useless to not be able to see it.
 
quizzle gives you a free credit score and credit report every year
 
We use Beacon scores through Equifax and do not average.
 
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