If I had a nickel for every time I heard this…. it’s usually followed up with, “but Jolynn the scores you have are different than the ones I show online”. Yes, they are different and they always will be.  Here’s what you need to know about credit scores.

?????????????????First, credit scores are constantly changing. What your credit score is one day may not be the same the next. The reason for that is that creditors can report information every day. So if one of your credit cards reports on say the 15th of the month, and you checked your credit the 14th of the month, the next day your score is going to be different.

Next, and probably the biggest difference in a mortgage credit score and an online credit score, is that other than FICO, no one really knows the exact calculation for your mortgage credit score. Think of credit scores like the secret formula to Coca-Cola or the KFC secret recipe.  Reason for this is so no one can intentionally manipulate their credit score to be an exact number. Your credit scores are also weighted towards the industry that pulls them. Your credit score for a mortgage, a vehicle and a credit card may all be different because they are different credit industries.

And finally, I hate to break this to you, but your mortgage credit scores are probably going to be lower than what you buy online. The online scores give us a ballpark of what your scores will be, but unless your scores are very high, usually they will be a lower score.

So what do you do? First thing is to get your credit report once a year from www.annualcreditreport.com.  It’s free.  This link will not give you scores, but it will let you know what your report will show once a creditor pulls it.  Check the validity of  the items on your report.  If something is late, ask the creditor for a good grace removal.  If something is wrong, dispute it and get it corrected.   Items within the most recent two years have the biggest impact on your scores.

Finally, are the online credit reports worth the cost you pay for them?  Maybe so if you’ve had major credit challenges in the past and are working on cleaning up your credit.  If you have high credit scores and maintain a good credit profile, probably not.

Ready to apply for a mortgage?  Apply online anytime day or night or call me at (405) 256-5110.  If your score isn’t where you need to qualify for a loan, we’ll put you on a plan to get you there!

By |2014-07-01T02:21:32+00:00July 1st, 2014|