A Credit Score Is Just a Credit Score?

Not that long ago, the credit score was a mysterious number. Whether you were shopping for a car, a house, or a credit card, you could be told your score was too low, and you would not be able to get any financing. Alter­nately, the paperwork might be presented to you and all you had to do was sign. Rarewly would you be told your actual score. As time has gone on, and laws have been passed, consumers now know not only what their credit score is, but also what factors are used to create credit scores. Unfortunately, the term "credit score" is used for any model that creates a number indicating your creditworthiness.

Each of the major reporting bureaus has developed their own scores. For example, Experian has a PLUS score, and Equifax offers a ScorePower number. Fair Isaac, the company that developed the classic FICO® score, of­fers multiple types of credit scoring models for its corporate customers. They have developed models specifi­cally for the auto industry, the credit card industry, the banking industry, and they've even built a model that is specific for home equity lending. The variety of credit scores, and the fact that scores can change on a daily
basis, has caused widespread confusion for many people. It is not uncommon for someone to get a credit score online, or from an auto dealer, or somewhere else, and then be shocked when they begin the mortgage buying process because their "credit score" varied significantly from what they thought it was.

The home mortgage industry continues to primarily use the classic FICO® score as the basis of evaluating creditworthiness. Whether you are currently in the market for a mortgage or may be in the future, one of the most important factors is your credit score. Please give me a call at (804) 433-1510 with any questions about your credit, and how we can get the best financing available for you