Ever had your credit score pulled from a bank? A car dealership? What about Credit Karma? Chances are your credit score was completely different from all three institutions. If you’ve ever applied for a mortgage, your credit score normally comes in at a lower number than what you find online. Why is that? 

There are a few reasons behind this:

Credit Is A Snapshot In Time

When you are pulling your credit score, it’s only reporting the information that is shown from that specific credit bureau. Credit is just a snapshot in time and is only as good as the information that has been provided. If the bureau you are pulling from (Experian, Equifax, or Transunion) hasn't received your most up-to-date information from that creditor, your score and report can only reflect what they have been given. Once the information has been updated to the bureaus, your report and score will be updated as well. 

Different Bureaus Have Different Scores

The three main credit bureaus are Experian, Equifax, and Transunion. Each of these credit bureaus offers one credit score based on their own algorithm. In the mortgage business, we actually pull from all three bureaus. We throw out the high score, we throw out the low score, and take the middle credit score. 

Consumer Credit Score Vs Mortgage Credit Score

Your consumer credit score is always going to be higher than your mortgage credit score. This is due to the residential mortgage credit report (RMCR) being scored differently. Mortgages are a three-decade-long endeavor, so the lenders want to make sure they are getting the most accurate information possible. 

If you’d like to receive a free copy of your credit report, you are allowed one report per bureau, per year, per federal government guidelines. Visit Annual Credit Report for a free copy of your credit report. 

Curious what your true mortgage credit score is? Call us at (727) 376-6900 or contact us.  

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