Why Bank's FICO Score so different?

Question

I applied for a Home Equity Loan from Bank of America. I was denied because they said my Transunion FICO score was 668. They only pulled my Transunion report - no late payments, only $36 balance on one credit card out of 3 (10,000 total available), no collections, etc. Only thing is short history of 3.5 years for credit cards.

I checked my Transunion via Truecredit Score. TU 753, EX 743, EQ 724. I know these are considered FAXO scores.

So I check myfico.com scores. TU 734, EX 686, EQ 716.

My Experian VantageScore is 818 - Grade B - Prime Plus

How could Bank of America get a score of 668 using only Transunion? Even if you add all 3 myfico.com scores together and divide by 3, you still don't get 668, you get 712.

I am going to other Banks. But just am curious how they got that score. It is like they pulled it out of thin air. Thank you for answers!!

Answer 1

You have to understand there are 3 different types of credit reports that can be pulled.

1. Standard like the ones you see on the internet.

2. Auto enhanced is the one that car dealers and lenders look at, it's slanted towards installment loans.

3. Factual this is the one that mortgage companies look at.

Every person depending on which type is pulled and by what credit bureau can have up to 9 different credit scores.

Answer 2

HELOCS are going away. The credit credentials are very tight. The secondary markets have now shy-ed away from any home equity placements, so banks must carry them on their own books.

NOTE: Credit scores are not consistent between what you might see and the bank might see. Scoring is a loan default model.

Answer 3

banks are currently in deep doodoo. most only use one credit reporting agency and have their terms based on that agency's method.

apparently transunion 668 is not good enough for them. or you may not have enough equity to support the loan.

Answer 4

Credit scores are different because creditors don't always report everything to every agency. This is why they use three. I think they should use the middle score. Apparently not, given the market conditions. Keep looking. With those scores, you'll find someone willing to give you some money. Try a Mortgage Broker. They'll have access to several different banks guidelines.