FICO & Credit score... Same thing?
Isn't your credit score the same as a FICO score or are they two different scores, also plus score and regular credit scores. What's the difference there? I've tried to look it up and get conflicting info. So if I have all three scores in front of me and EXPERIAN is smack dab in the mid X00 and the other two are the exact same number just under that XOO mark. Which one do I go buy when there is a question that had only room for one number and it says What is your FICO score? I had a investing consultant pull them for me and get me a set of copies but I couldn’t contact him last night when I sat down to read it. I was just wondering because we need to buy a new house and also have to start up his business all over again in this new state, plus I am going to be starting my own business that is completely different. My husband and I need to do the mortgage in his name and the rest in mine in order not to over extend our credit because I have certain things they won’t allow us to figure in as income an it’s a big chunk of change. So I was looking at stated income loans, but now that I have looked at tons of loan sites I see that it will be no problems at all, he can use part of my income as a stated income and I can use part of the funds I get that they wouldn’t include in a regular loan for my stated income. All because my extra finds are a personal agreement to pay off a debt to avoid winding up in jail for embezzlement. THANKS TO ALL !
Public Comments
- THERE ARE 3 MAIN SCORING COMPANIES. THE NAME OF ONE OF THE SYSTEMS IS FICO. THAT IS THE BEST KNOWN NAME AND IS COMMONLY USED AS A GENERAL TERM, BUT IT IS REALLY SPECIFIC. THE REASON 3 SYSTEMS ARE USED SEEMS TO ME TO BE THAT THERE ARE SO MANY ERRORS THAT THE LENDERS WANT TO BE SURE THEY DON'T MISS ANYTHING. THEY TYPICALLY USE THE MIDDLE OF THE 3 SCORES FOR MORTGAGE PURPOSES. MORTGAGE BROKER
- it's the same. FICO, BEACON = Equifax Classic = Trans Union Fair Isaac = Experian
- As early as 1994, those in the mortgage industry became aware of 'scoring models.' These scoring models were result of the development of automated underwriting systems. The first to come up with this automated scoring system was a company called the Fair-Isaacs Company (FICO). The idea behind the scoring models was a good one. It was meant to streamline the lending process. But it's only been in the last few years that consumers have seen some relief in the vast amount of paperwork involved in obtaining a mortgage. But why is the credit score so important? The answer is this; The lending industry has moved toward risk-based pricing. In lay terms, the lower your score, the higher your interest rate and the more paperwork you have to provide to prove that you are creditworthy. What is of particular interest is the incredible amount of money you save, over time, with a lower interest rate. You would be surprised to see how much less money you pay over the term of a 30-year note if your rate is 6% as opposed to 7% on a $100,000.00 loan. THAT'S why it's extremely important to achieve a high credit score before applying for a loan.
- I just finished the new book entitled Women & Money by Suze Orman. Since you seem to be like me and probably barely know enough about credit scores, saving money, stocks, to get by, I will tell you to get that book and it will explain credit scores/FICO. Very good book, very simple language to understand. I recommend her books to every women wanting to understand finances better.
- FICO is the same as your credit score.
- I have only a few things to add to clarify a few things. The important thing to understand these numbers will not always match the ones lenders come up with. Why? Each has their own formula that may weight things differently..hence..they could come up with a different score. If I pull a score from Equifax or MyFICO...this score is the "offical" Fair-Issac FICO score. If I pull a 3in1 score like what I have through Trans union..it's not offical..just a estimate. The bottom line is this: It really does not matter. Three different lenders can pull the same exact report and come up with three different scores..sometimes 100 points apart.
