Trusted by borrowers
Call Now 949-484-6322
Free Workshops

News Flash: Your Credit Score, Is It Wrong? 5 Tips on Why and How

Date: 02/27/2015        [ Go Back ]

1. DON'T BUY OR ACCEPT A FREE credit score from any third party companies! 

    - It may be up to 100 points different than the score used by mortgage lenders.

    - You can obtain your credit score for FREE from a mortgage lender.

2. Use the credit score companies. You can access your FREE annual credit report from each of the three credit bureaus — Experian, TransUnion and Equifax. That means you can compare the three scores and dispute credit-reporting errors if any.

3. Demand to see your credit score that the lender is using as soon as possible when applying for a loan. If the information doesn't seem accurate, ask questions. Resolve any issues before agreeing to any loan or purchase. WHY? Because your credit score can affect the rate you’ll pay for the NEXT 30 YEARS! 
 
4. Shop for loans at multiple lenders to find the best rate and fees. (The Mortgage Fee Coach has 25 years experience in this area and has found lenders with up to .50% difference in rate and fees). Half of one percent looks small but can mean thousands of dollars difference over a 30-year loan!
 
5. CALL the Mortgage Fee Coach (my name is Dan Stone) at 949-484-6322 if you want the lowest rate, lowest fees and the best quality lender.
 
4 More Things You Should Be Aware of on This Subject
 
1. The Consumers Financial Protection Bureau concluded that consumers should not rely on credit scores when considering how lenders view their creditworthiness. Up to 32% of the credit scores the borrower received were different than the lender's credit score. There are hundreds of different credit scores, said Steve Wagner, President of Experian. The only score that may be close is the VantageScore, which is used by 1,300 lenders. If you purchase the Experian PLUS score, the fine print explains it is not the score used by lenders. If you are truly considering a loan, call a lender. If they are interested in helping you, they can provide a free report.
 
If you don't know a lender that offers to help you access your free report, call the Mortgage Fee Coach at 949-484-6322. We know lenders that will help you.
 
2. Go to AnnualCreditReport.com. We recommend requesting your annual credit report every 4 months. For example, request your report from Experian 4/1/15, request from TransUnion 8/1/15 and request from Equifax 12/1/15. Start over again next year. Always know the information on your credit report before applying for a loan. Resolve all issues as soon as possible, because it will require more time than you expect.
 
3. Millions of consumers purchase FICO scores for $20 each. However, FICO scores are not the scores used by car dealers, auto-finance companies, and mortgage lenders! FICO, or Fair Isaac Company, sells 49 different credit scores to lenders
 
4. Considering requesting a free credit score from any of the companies? Have you read their agreements? The score is not used by lenders. The companies want to sell you their services as well as all the companies they sell or give YOUR email address to. It's not worth it. 
 
About this article, much of the information was gathered from Consumer Reports article in their July 2013 magazine. Consumer Reports is a very trusted and ethical information source.
 
WE’D LIKE TO HEAR FROM YOU!!!
Have you found your credit score to be different than the lender’s score? Write to us!