Mortgage Rate-Credit Score-Watch What You Pay For

By: Jack Krohn

As amazing as it may seem, when it comes to getting a credit rating not all credit scores are the same. When you pay to get a rating number it may not be the same one your lender sees.

What are the implications of this? Well for starters it could mean the difference between getting a mortgage or not, getting any kind of loan or not, getting a good versus bad rate on a car loan, the list goes on and on. The implications are huge!

Where does the difference come from? If you go looking for a credit score you will find many sources from credit bureaus themselves to credit card companies. Some of these are free but most are not. These serve as additional profit centers for the providers. They all have their own take on what makes up your credit score and may or may not be close to what the real deal is.

What is the real deal? The real deal is the FICO score. Fair Isaac and Company has been THE source of credit scores for lenders for decades and will probably remain so.
The other score for the purposes intended are worthless. Checking your real FICO scores and credit reports is the best way to get an accurate picture of how lenders see you.

What's the Problem? It's all about the money. From the credit bureaus perspective, credit bureaus got tired of sharing fees w FICO so they came up with their own score and decided to market them. From a consumer perspective, it can mean thousand of dollars between an inflated bureau score and the real deal from FICO.

What's the solution If you are looking for a loan-car, home, whatever-DON'T PRESS THE EASY BUTTON. Go to the extra effort of getting the one that counts. The FICO score. It may be a little more difficult to understand but it will pay for itself in the value of information it provides you.

What do they say about bad information? It leads to bad decisions. Make a good decision and get the best information-get a FICO score!

Jack Krohn is a leading free lance writer on Home Equity and Mortgage issues with over 35 articles to his credit. He is also the #1 author of Home Security Articles in the country according to Ezine Articles.

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