Which credit Score Do Lenders Use to Qualify Me For a Loan?

You have a prestige score with the three main bureaus, Equifax, Transunion and Experian. Each bureau has come up with their own version of the prestige scoring method which is unknown to the public.

This creates a situation where your three scores are highly unlikely to be the same. The prestige score that a lender looks at when qualifying you for a loan well depends on the type of lender. Most buyer credit, car and personal loan lenders use only one score to resolve if you will get stylish and to resolve your interest rate and terms. The geographical location of the lender sometimes determines which bureau they will turn to for that score due to business relationships.

Home Loan Complaints

The relationship between a lender and a prestige bureau is just like any business relationship. The lender will pay to have entrance to each prestige narrative and score from the chosen prestige bureaus.

On the other hand when you are dealing with mortgage loans, the lender will look at each of your three prestige scores. (Equifax, Transunion & Experian) They will base their approval on your middle score. For example your Equifax score was 654, your Transunion 669 and your Experian was 704.

Your mortgage interest rate and loan terms would be based on your Transunion score of 669 because it's the middle one in terms of the value of the number. It is a good idea to check your prestige reports with each of the prestige bureaus before you apply for a loan. This way you can make sure there are no errors that will negatively impact your prestige scores.

Which credit Score Do Lenders Use to Qualify Me For a Loan?