Why Your Credit Score Can Be Different for Mortgages

Here’s why your credit score can be different when applying for a mortgage.

Why is your credit score for mortgage applications different from your score for credit card applications? A lot of clients ask me about this when I pull their score, so I wanted to go over it briefly and catch everyone up.

Most people know that there are three big credit companies: Experian, TransUnion, and Equifax. What you might not know is that there are different algorithms for different lending products. For example, credit card applications use the Fico Score 8 model.

Mortgages use a different algorithm; usually, it’s the Fico Score 2, 4, or 5 models. There can be a big difference sometimes depending on which algorithm is used.

If you want to know more about mortgages and credit, or if you have any other questions, please reach out via phone, email, or text. I look forward to hearing from you.