Why is an applicant credit score different from credit scores received elsewhere? For example, if the applicant never applied for credit and therefore has no tradelines, there is no credit history for a credit score. This is due to the Exclusion Criteria stated above. Sometimes an applicant’s credit report does not have a credit score. Why does the applicant not have a credit score? The resulting credit score can then be identified by credit score ranges. The delinquency risk is determined by consumer charge-offs or bankruptcy over a 24-month period.įICO Credit Scores help identify and separate reliable borrowers from those likely to become 90 or more days delinquent. The FICO Credit Scores use information from TransUnion’s consumer credit databases to assess a consumer’s risk of delinquency. Dedupe does not apply to credit card shopping. FICO uses a 30-day buffer and a process called “deduplication” on multiple inquiries for a mortgage or car loan, in effect counting them as one. Primary Algorithms: 00P02 Other Information:ģ0-day buffer and 45-day inquiry dedupe of all auto and mortgage related inquiries. High score = low riskĮxclusion Criteria (the applicant must have): Model: Delinquency (90+ days) within 24 months What major factors are considered for the FICO Risk Score Classic 04? Applycheck in keeping with industry standards, provides the FICO Classic 04 Score with credit reports by Transunion as part of our background screening reports. Who uses FICO Risk Score Classic 04?įannie Mae and Freddie MAC, the largest purchasers of home mortgages on the secondary market, both use Classic FICO Scores. The “0” was first included since the score was introduced in 2004). Also known as the TransUnion FICO Risk Score Classic 04 (FICO has since dropped the 0 in 04. FICO Risk Score Classic 04?įICO Version 4 (also called TransUnion FICO Risk Score, Classic 04) is one of the three primary scores mortgage lenders use in underwriting. These versions have a score range of 250 to 900, so the scores are not fully comparable with “Classic” versions. Industry Option FICO Score VersionsįICO offers “Industry Option” versions customized for auto loans, credit cards, installment loans, personal finances loans, and insurance. Each version uses a different formula and produces a different score. As a result, a consumer’s FICO scores from each agency may differ. Credit Agency FICO ScoresĮach credit agency ( Transunion, Equifax, and Experian) uses a customized version of each FICO edition. FICO scores have different names at each of the different credit reporting agencies. You may not realize that there hundreds more than 50 different versions that FICO sends to lenders. However, in general, payment history is 35% of the score, accounts owed is 30%, length of credit history is 15%, new credit is 10%, and credit mix is 10%. To determine credit scores, FICO weighs each category differently for every individual. FICO is the most common credit score used by lenders. What is a FICO Credit Score?Ī FICO Score is a 3-digit number (300-850) based on your credit reports. What is FICO?įICO, originally Fair, Isaac and Company, is a data analytics company focused on credit scoring services. Knowing how credit scoring works will help you choose what’s right for you and help you understand what gets reported. There are a lot of credit scoring models. Whether your association’s rules and regulations require a credit report, or just doing your due diligence, knowing the applicant’s prior history is a good indicator of how they will pay. Good applicants make a property manager’s work easier and allow bills to get paid on time. A property managers tenant screening credit check and score will indicate someone who pays their bills on time with no large, outstanding debts. Such as a good credit report and credit score with no major blips. Experienced property managers look for applicants who can pass the test.
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