You need to go reread all the data about the new credit scoring. They are finally standardizing the method of scoring but they have done nothing about making sure all 3 bureaus have the same info. You can't force a creditor to use a for-pay service. They do not have to report at all. They can report to 1, none, 2, or all 3.

There is also no requirement for how often they update the info on any bureaus they report to. Most update every 3-4 months. Some every 6 months and others once a year. It costs them money every time they report info so this can get to be a costly process.

The score is based upon the info residing at that credit bureau. Different information means different scores, it's as simple as that.

Many of us have the connections to get a credit supplement with updated info from all 3 bureaus, BUT the quickie update doesn't research the data, you still have to do that and furnish the corrected info to them and then they will update within 72 hours. Small charge but worth it. Unfortunately the time and hassle to get the updated info can be extreme. We help people for free as we feel it is just part of the loan. There is no simple way to get the individual creditors to agree to do the research and get you a correction letter.

You are right that most Underwriters will drop the low score or average all 3 scores. I prefer the dropping the low score as that seems to get most people a higher score and a better loan.

I have yet to find an underwriter or a company that is up in arms about the changes, they all relish it because it will eliminate so many of the current issues. Let me guess you do a lot of "B" (bad) loans? "B" lenders will feel the pinch as you won't find as many people that get knocked out of "A" or "A-" loans and into "B" because the spread of the credit scores won't be so large.

Car dealers have been pulling credit reports with just name and address for years. You give them your driver's license so that you can test drive a car. They copy it and run a credit report while you are out. It gives them an edge in the negotiation process.

It is also illegal for anyone to pull your credit without WRITTEN permission and there is a $10,000 fine.

 

so...what you're saying is that car dealers pull your credit all the time w/o your written permission, and this is illegal? if i remember my report right, it lists anyone that has pulled your credit, right? i should quit my job, test drive cars all day, then collect my tens of thousands of dollars from any dealerships that pull my credit.

 

Equifax 791! Would have been over 800 had I checked it a few days later when my present CC payment would have been posted.

Oh and I have ONE late pay in my LIFE when, in a bold stroke of bad judgment, I foolishly co-signed a loan for an erstwhile GF. We broke up, she stopped paying and I didn

 

Yes, it is illegal for ANYONE to pull your credit w/o your written permission.

Your credit report will/should list anyone who has pulled your credit. You have given all of your present creditors the right to pull your credit anytime they want. Those pulls don't affect your credit scores.

New pulls will lower your credit scores by 1-10 points. The amount it drops your score is determined by how recent the pull was with all effect going away after 90 days. The concept behind the score drop is that a pull could result in new credit that isn't reflected on the bureau. The bureaus feel that after 90 days if credit resulted because of the pull then your new account should have been reported to the bureau so there is no need to ding you for a theoretical piece of new credit.

In theory multiple pulls by the same type of entity (car dealer or mortgage) should count as only one pull and therefore you get only one ding, BUT in practice you usually get dinged for every pull since very few businesses pull directly thru the bureaus but go thru a third party, Unfortunately this means the bureau can't distinguish when the pulls are for the same purpose so you get dinged everytime.

Why don't most creditors go directly to the bureaus? Bookkeeping! The bureaus are notorious for erroneous billing. I used to go direct, but when month after month I got $600- $1,000 misteaks (times 3 bureaus) I simply had to go to a third party and let them worry with dealing with the bureaus. The bureaus make you pay the misteak (or you can't pull any more credit reports) and then will refund the money at some time in the future. At one time I had over $20,000 floating.

Most creditors report every 3 months. A lot report every 4 months. Some report ever 6 months. A few just report every year. Keep in mind it costs them money to report to the bureaus so they don't keep a running total.

As to living off the fines, good luck. Who do you think gets to keep those fines? Although one of the credit bureaus did tell me that the fine money was supposed to go to the person whose credit was pulled. Now how would you go about getting the $$$ from the government?

When I go look for a car I specifically warn them not to pull my credit. I tell them about the fines and I tell them I get to keep the fine money so I tell them to "make my day", Dirty Harry style and that has kept the extra pulls to a minimum. They always say that while other companies might do that that they never do, but a friend who is a sales manager for a car dealer tells me those people are full of sh*t that they all pull credit reports on everyone they can. As someone else mentioned, they don't need a SS# to be able to pull credit, only a name and address - even an old address will work.

 

Well, all other things being equal you are right.

But you still have to make enough money have low enough debt and be stable enough to qualify for the loan you are asking for.

Credit is only ONE of the qualifying criteria.

 

Enough money and low debt is in fact part of your credit score. Now if you're talking about making enough money for the actual loan itself, that's obvious. At 813 I can get any qualifying loan I want but not one that would tax out my income.

 

Actually enough money and low debt ISN'T a part of your credit score.

In the first place the credit bureaus don't have access to your bank accounts (thank goodness) so they have no idea of your assets.

In the 2nd place they don't have any clue what type of loan you are requesting so they don't know if you have low or high debts for that loan.

Now what they do know, sometimes, is your credit limits and your present balance.

In that case a present balance that is 50% or less of your credit limit will give you the maximum credit score. If you are maxed out then they presume new credit will result and your credit scores will be lower.

The poor guy who pays cash for everything might have a horrible score but be an excellent credit risk. Unfortunately there would be no data to prove his creditworthiness.

Credit scores are not an exact science and are only one part of the loan approval process. They are a big part because many lenders of all types require a certain credit score before they will look at the other parts of the approval process.

 

Thanks for the information about illegal credit checks. According to my credit report, Capital One pulls my credit every 30 days. I have NEVER done any business with capital one but receive offers in the mail almost daily. They do not have permission from me to do a credit check. How do I go about prosecution. I would think that it is probably a lost cause against such a huge company with unlimited resources.

 

[QUOTE=Wildncrazy,Jul 6 2006, 02:06 PM] Actually enough money and low debt ISN'T a part of your credit score.

In the first place the credit bureaus don't have access to your bank accounts (thank goodness) so they have no idea of your assets.

In the 2nd place they don't have any clue what type of loan you are requesting so they don't know if you have low or high debts for that loan.

Now what they do know, sometimes, is your credit limits and your present balance.

In that case a present balance that is 50% or less of your credit limit will give you the maximum credit score.

 

^Please explain how you think the credit bureaus know how much money you make in order to calculate this "debt to income" ratio.