Where Are Lenders Getting Credit Scores?

Reprinted from: Daily Real Estate News September 4, 2008
"Consumers often mistakenly believe that mortgage lenders use only credit scores from Equifax, Experian, TransUnion, and Fair Isaac's myfico.com to gauge creditworthiness. However, Consumer Reports recently found that lenders also use NextGen FICO scores, FICO Expansion Scores, and Industry Option FICO scores — which take car loans into consideration — as well as custom formulas. Given that these credit scores or scoring models are not available to consumers, experts say that consumers should not rely solely on available credit scores to determine their likelihood of getting a loan. They would be wise to make timely bill payments, make more than the minimum payment, hold down credit card balances, and retain old accounts. Additionally, experts say it might be worth keeping tab on other credit scores, such as Experian's PLUS scores, which are not yet sold to lenders but could be in the future."