Most real estate professionals would agree that credit scores are often a point of confusion for their clients—buyers and sellers, alike. With so many variations of credit scores available online, it can be unclear which one to pull, or which one bankers will look at when assessing whether a client qualifies for a mortgage. Clients who order the wrong scores are often angry and frustrated that their information does not match what the bank presents, and they can end up losing out on a property as a result. To help our clients and agents avoid this type of situation, below you will see information that breaks down the various types of credit scores and their typical ranges, and gives an overview of which scores are available for purchase, and which scores bankers will use. Managing expectations is key to a smooth, successful transaction and a healthy client relationship.
There are many credit scores available to purchase online. The closest score to the score used by most mortgage lenders can be purchased at ww.myfico.com and is called a Fico score. If you buy a different credit score it may have a totally different range. For example:
If you had a 740 Vantage Score it would not equal to an excellent 740 Fico score. Knowing what score to preview can help you better prepare for financing.
Fico: 300-850 above a 740 is excellent.
Please speak with me about what score best works for your loan. Ninety five
percent of banks use Fico scores to evaluate a borrower’s potential risk when
applying for financing.
Vantage: 501-990 with letter grades A-F. This score is sold by the Credit Reporting Agencies (CRA’s -Experian, TransUnion, and Equifax) and is very different from the Fico banking scores.
Plus Scores: 330-830 are sold by the CRA’s strictly for educational purposes.
Equifax Scores: 280-850 also score for educational purposes by CRA.
There are also Credit Karma Scores, National Risk Scores, and more. Be sure you are
comparing the score used by lenders or you may find out you are in a totally
different category then you think.