I was told that there is a difference between a consumer credit score and a mortgage credit score. Is this true? If so, what makes up the mortgage credit score?
The mortgage companies pull a report with your three scores from Experian, TransUnion and Equifax. They then drop the low score, and the high score, and underwrite you based on that middle score. So for example, if your three scores are 725, 720, and 689 – they would rate you at 720. The absolute majority of auto loans, be it through the finance company of the dealer or a bank only use the TransUnion score. With most auto loans, you can achieve the best interest rate with a 720 score of better, so in my scenario if your TransUnion was the 689 – you would not qualify for the best rate, and would be unable to talk them into it! While many credit card companies will also only use one score, but which one may vary. Hope this clarifies why your consumer score may differ from your mortgage score..