thatblissguy asked:


I know that the calculations used by lenders for a mortgage differ from Fair Isaac (FICO). I have TrueCredit (by TransUnion) triple credit monitoring which gives me unlimited access to all three of my credit reports (TransUnion, Equifax, and Experian) AND my FICO scores. I am preparing myself for a refinance and I want to see how I am scoring with the mortgage calculation, since I have improved my scores significantly over the past year when I got my sub-prime mortgage. My one year prepay penalty is coming up in late December and I want to be fully prepared before I start shopping. Also, what ABSOLUTE MINIMUM credit scores do I need, (FICO) and (Mortgage Lender), to be considered for a Prime rate (<7.5%). Thanks for your help, the people that contribute are greatly appreciated and I'm honored for your time and efforts! Keep up the good work!!!
So I just figured out recently that TransUnion's TrueCredit scoring use FACO and not a true FICO. I went to each bureau seperately and got my FICO and heres what I found, its astounding:
TU EXP EQ
FACO: 637* 596 607
FICO: 637* 660 678

*TransUnion only offers this scoring

I was going off this FACO calculation for over a year! Come to find out I have pretty good credit, and the things I have done to improve it had paid off substantially more than I thought in the past! My Mortgage score was MUCH higher than my FICO when I was applying for my first mortgage. So I now feel that my MORTGAGE SCORE should be in the 700s? Does anyone agree with that? That a middle score of 660 FICO would be at least 700 in Mortgage credit scoring?

Beth

starsbrnred asked:


Here is my question: Why must we have credit scores to determine trustworthiness?

Here is my reasons: Aside from the unapproved monitoring of personal purchasing actions and accounts- Why do we “trust” people who have gone into debt over those who have not?

I understand that good credit means you are good at getting out of debt. I have no credit, in my late 20′s and made it all the way up and through grad school without taking loans (meaning I worked my tail end off while attending school to not owe anyone money so I could graduate free and clear). So I stand with no credit history, because I don’t own a credit card, can afford all my purchases or save up for them, and work hard to not go into debt.

So why is it that in the U.S. we value people with who have consistently gone into debt over those who haven’t? Who profits from this “credit” system, us (the people) or the rich capitalist? Any ideas or suggestions for change?
Thanks so much for the answers so far. They have been really insightful and helpful.

Additionally, I know that people suffering from identity theft can freeze their credit accounts for free (as well as residents of California for $10 X the 3.) What are the advantages and disadvantages of doing this? What happens if more people froze their accounts?

(I understand its “the real world” the way things are currently… but then again years ago credit scoring isn’t what it is now. So I want to expand our thinking beyond looking at the current situation as static and set in stone.)

Many things improve over time, do you see credit reports evolving to adapt to their current limitations? and how?

Rachel