You And Your Credit “Score”

July 6th, 2011

I had to write a blog on this today as I’m completely stunned by the response I got from Equifax.

I called Equifax on behalf of a client to try and understand the¬†discrepancy¬†between their “score” and my “score” (a significant difference of 60 points).

What I was told by the Equifax representative is there are two “scoring” methods. One for consumers to determine approximately what their performance over time is (i.e. how they pay/manage credit) and another, your BEACON score which determines your credit worthiness or overal risk assessment. The BEACON score is what is calculated and used by all credit/lending facilities and is calculated at the time of request.

The two “scores” are not linked in anyway. “They should be relatively close.”, the representative tells me.

What does this mean? Well if you work hard at changing your “score” or at least the consumer version there of, this may not have any significant impact on your BEACON score.

Case in point, my client thinks he has amazing credit. My view of the same file says he’s a borderline case at best.

Bottom line, I can’t get him a mortgage and all I am allowed to tell him is that he needs to fix his credit. The only thing he can do to fix it is to wait and it will repair itself over time. How long? Well then he has to get me to view my side of the credit story to tell him if he’s close or not. There’s no way he can tell if he’s over the magic number or not. Translation too long as his renewal is in very short order.

Does this make any sense to anyone else? How is the consumer supposed to know something is good enough when they can’t even access the same view as the credit companies have?

I’m speechless.

Who do we get to fix it? No one as they are a monopoly (or maybe a du-opoloy with TransUnion which is just as bad). You’re out of luck today, but just wait a while. It will get better and you can reapply in a few months. How many? We can’t tell you that. Please try again later.

JRW

One response to “You And Your Credit “Score””

  1. walshsurvey says:

    That is out and out crazy.