by Greg Vogel
Credit Myth #6: My mortgage lender can use the credit report I obtained online.
It is extremely rare that lenders can use a personal credit report that was pulled online. Mortgage lenders usually use their own internal credit reports that correspond to their automated underwriting systems. They also use a FICO model that is slightly tweaked to better assess risk for their particular industry. An online consumer report will almost always have a slightly different credit score and report format than what a mortgage lender uses.
Most other lenders and creditors only use internal credit reports as well. Since the FICO score serves to measure the potential risk of a borrower, each industry that uses the FICO scoring model has a slightly tweaked FICO algorithm that more closely assess risk for that individual industry. This in theory allows creditors to assess risk better and make better decisions regarding their specific lending products.
Greg Vogel is a Consumer Credit and Debt Advocate. He is a FICO and credit reporting expert with the goal of putting himself out of a job through creating awareness and education about the exploitative nature of the Credit and Debt industry.Wellness Credit advocates for consumers in the credit world and repairs credit to raise FICO scores.