You would think that its is the credit lender that comes up with the reasons why it does not want to grant your credit application. Wrong. The lender makes the decision but it is the credit bureaus that provide the reasons why your credit application is denied to the lender which the lender then inputs on the adverse action letter they send you informing you that your application was denied. Every time a credit bureau sends out your credit report to a third party, it includes four reasons why you should be denied credit, no matter how good your credit history is. Even if your payment history is flawless and you have a "perfect" credit score, the credit bureaus still provide 4 reasons you shouldn't get credit. Crazy, right?
The four reasons come in the form of four code numbers. Here is a list of what those code numbers mean -
EQUIFAX – BEACON Score Codes
39 – serious delinquency
38 – serious delinquency, and derogatory public record or collection filed
34 – amount owed on delinquent accounts
33 – proportion of loan balances to loan amounts is too high
32 – lack of recent information on installment loan accounts or lack of installment loan accounts
31 – too few accounts with recent payment information
30 – time since most recent account opening is too short
28 – number of accounts established
24 – no recently reported revolving balances
23 – number of bank or national revolving accounts with balances
22 – accounts not paid as agreed, public record, or collection agency filing (FORECLOSURE)
21 – amount past due on accounts
20 – length of time since derogatory public record or collection is too short
19 – too few accounts currently paid as agreed
18 – number of accounts with delinquency currently or in the past not paid as agreed
17 – no non-mortgage account balances or non-mortgage balances not recently reported
16 – lack of recent revolving account information
15 – lack of recent bank revolving information
14 – length of time accounts have been established
13 – time since delinquency is too recent (or unknown) or trade narrative reported
12 – length of time revolving accounts have been established
11 – amount owed on revolving account is too high
10 – proportion of balances to credit limits is too high on bank revolving or other revolving accounts
09 – too many accounts recently opened
08 – too many inquiries last 12 months
07 – recent payment history is too new to rate
06 – too many consumer finance company accounts
05 – too many accounts with balances
04 – too many bank or national revolving/open accounts
03 – too few bank or national revolving/open accounts
02 – level of delinquency on accounts
01 – amount owed on accounts is too high
O – beacon not available, no recently reported account information
FA – number of inquiries adversely affected the score, but not significantly
TRANS UNION – EMPIRICA Score Codes
42 – length of time since most recent consumer finance company account established(**factor not currently in use)
41 – no recent retail balances (**factor not currently in use)40 – derogatory public record or collection filed
39 – serious delinquency
38 – serious delinquency, and public record or collection filed
36 – payments due on accounts (**factor not currently in use)
31 – amount owed on delinquent accounts (**factor not currently in use)
30 – time since most recent account opening is too short
29 – no recent bankcard balances
28 – number of established accounts
27 – too few accounts currently paid as agreed
26 – number of bank revolving or other revolving accounts (**factor not currently in use)
24 – no recent revolving balances
23 – number of bank or national revolving accounts with balances
22 – serious delinquency derogatory public record or collection filed (FORECLOSURE)
21 – amount past due on accounts
20 – length of time since derogatory public record or collection is too short
19 – Date of last inquiry too recent
18 – number of accounts with delinquency
17 – no recent non-mortgage balance information
16 – lack of recent revolving account information
15 – lack of recent bank revolving information
14 – length of time accounts have been established
13 – time since delinquency is too recent or unknown
12 – length of time revolving accounts have been established
11 – amount owed on revolving accounts is too high
10 – proportion of balances to credit limits is too high on bank revolving or other revolving accounts
09 – too many accounts recently opened
08 – too many inquiries last 12 months
07 – account payment history
06 – too many consumer finance company accounts
05 – too many accounts with balances
04 – lack of recent installment loan information
03 – proportion of loan balances to loan amounts is too high
02 – level of delinquency on accounts
01 – amount owed on accounts too high
00 – no adverse factor
MODEL NOT SCORED: INSUFFICIENT CREDIT message occurs when a credit file does not contain
a trade line opened for at least 6 months and trade line updated within the last 6 months.
FA – in addition to the factors listed above, the number of inquiries on the consumer’s credit file has adversely affected the credit score.
MODEL NOT SCORED: DECEASED message occurs when the subject’s Social Security Number matches the Social Security Administration’s deceased Social Security Number file, or is reported as deceased by a credit grantor.
EXPERIAN – FAIR ISAAC Score Codes
40 – derogatory public record or collection field
39 – serious delinquency
38 – serious delinquency and public record or collection filed
37 – number of finance company accounts established relative to length of finance history
36 – length of time open installment loans have been established
33 – proportion of current loan balance to original loan amount
32 – no recent installment loan information
31 – too few accounts with recent payment information
30 – length of time since most recent account established
28 – number of accounts established
26 – number of revolving accounts
25 – length of installment loan history
24 – lack of recently reported balances on revolving/open accounts
22 – account(s) not paid as agreed and/or legal item filed (FORECLOSURE)
21 – amount past due to accounts
20 – length of time since legal item filed or collection item reported
18 – number of accounts delinquent
17 – no recent (non-mortgage) accounts balance information
16 – insufficient or lack of revolving account information
15 – insufficient or lack of bank revolving account information
14 – length of time accounts have been established
13 – length of time (or unknown time) since account delinquent
12 – length of revolving account history
11 – current balances on revolving accounts
10 – proportion of balance to high credit on bank revolving or all revolving accounts
09 – number of accounts opened within the last 12 months
08 – number of recent inquiries
07 – Unable to evaluate recent payment history
06 – number of finance company accounts
05 – number of accounts with balances
04 – Too many bank revolving accounts
03 – Too few bank revolving accounts
02 – delinquency reported on accounts
01 – current balances on accounts
Exclusion Messages
9003 – Experian/Fair Isaac Score Not Available Due to Lack of Credit History – The Profile report does not contain any trade lines which have been open for at least six months
9002 – Experian/Fair Isaac Score Not Available Due to Model Exclusion Criteria – The Profile report does not contain any trade line which satisfies both of the following:
1. Status date within the last six months, or a balance within the last six months if the status code is not “11″ (“Current account”)
2. Does not contain disputed information
9001 – Experian/Fair Isaac Score Not Available Due to Report of “Deceased” Status – The Profile report contains a subscriber transaction with a status code of “21″ or an association code of “X” indicating the consumer is deceased
9000 – Experian/Fair Isaac Score Not Available Due to System File Size Parameters – The Profile report contains more than 100 subscriber trade and inquiry transactions
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Showing posts with label Fair Isaac. Show all posts
Showing posts with label Fair Isaac. Show all posts
February 18, 2010
November 23, 2009
Fair Isaac loses antitrust lawsuit
A Minneapolis jury on Friday ruled against Fair Isaac and in favor of credit bureau Experian in an antitrust lawsuit filed by Fair Isaac against Experian. Fair Isaac claimed that it had exclusive trademark rights to credit scores utilizing any score range that overlapped 300 to 850. Fair Isaac claimed that Experian's VantageScore credit score violated its alleged trademark rights. Unfortunately for Fair Isaac, the Minneapolis jury disagreed.
"Today's verdict is a victory for Experian and for American consumers," said Kerry Williams, group president of credit services and decision analytics at Experian. "By preventing FICO from further stifling competition in the marketplace, the jury's decision will increase consumer choice in credit scoring."
The jury also found that Fair Isaac committed fraud on the Patent and Trademark Office in obtaining its trademark registration.
VantageScore is the credit reporting industry's first credit score developed jointly by the three national credit reporting companies to deliver consistent, objective credit scores across their respective databases. VantageScore provides consumers and businesses with a highly predictive, consistent score that is easy to understand and apply. VantageScore utilizes a range from 501 to 990 that naturally aligns with well-known A, B, C, D and F grade intervals, and is used by four of the top five U.S. financial institutions and eight of the top 10 credit card issuers.
"Today's verdict is a victory for Experian and for American consumers," said Kerry Williams, group president of credit services and decision analytics at Experian. "By preventing FICO from further stifling competition in the marketplace, the jury's decision will increase consumer choice in credit scoring."
The jury also found that Fair Isaac committed fraud on the Patent and Trademark Office in obtaining its trademark registration.
VantageScore is the credit reporting industry's first credit score developed jointly by the three national credit reporting companies to deliver consistent, objective credit scores across their respective databases. VantageScore provides consumers and businesses with a highly predictive, consistent score that is easy to understand and apply. VantageScore utilizes a range from 501 to 990 that naturally aligns with well-known A, B, C, D and F grade intervals, and is used by four of the top five U.S. financial institutions and eight of the top 10 credit card issuers.
October 13, 2009
Free credit score at quizzle.com? No, not really
Quizzle.com is getting a lot of buzz lately, particularly after being mentioned by Clark Howard as a place consumers can get their credit score for free. While consumers can purportedly get a free credit score once every six months, the problem is that its not a credit score that actually used by lenders.
In other words, quizzle.com is about as useful as say ... I don't know ... me telling you faithful readers what your credit scores are. You right there, your score is 684. You over there, your score is 575. You in the red shirt, yours is 702. Guess what, my credit scoring model is not used by lenders either, so its just as useless as quizzle.com's score.
Don't take this to mean that I am suggesting buying your score from one of the credit bureaus like Experian, Equifax or Trans Union. Oh, much to the contrary, that would be even worse. Then you would be paying for a score that's also not used by lenders. That's right, folks, lenders don't use the big three's credit scores either.
Lenders typically do one of two things - they either set their own criteria for what's important to them, which means that particular lender's scoring model is unique. Or lenders use one of the pre-made scoring models, such as Fair Isaac's scoring model. So if you really want to get your credit score that could actually be a credit score that a lender might use, then you should buy your score from Fair Isaac by going to http://www.myfico.com/. The basic credit report (from Equifax or Trans Union) and FICO's scoring model costs $15.95. The myfico website touts this score as one "lenders use".
In other words, quizzle.com is about as useful as say ... I don't know ... me telling you faithful readers what your credit scores are. You right there, your score is 684. You over there, your score is 575. You in the red shirt, yours is 702. Guess what, my credit scoring model is not used by lenders either, so its just as useless as quizzle.com's score.
Don't take this to mean that I am suggesting buying your score from one of the credit bureaus like Experian, Equifax or Trans Union. Oh, much to the contrary, that would be even worse. Then you would be paying for a score that's also not used by lenders. That's right, folks, lenders don't use the big three's credit scores either.
Lenders typically do one of two things - they either set their own criteria for what's important to them, which means that particular lender's scoring model is unique. Or lenders use one of the pre-made scoring models, such as Fair Isaac's scoring model. So if you really want to get your credit score that could actually be a credit score that a lender might use, then you should buy your score from Fair Isaac by going to http://www.myfico.com/. The basic credit report (from Equifax or Trans Union) and FICO's scoring model costs $15.95. The myfico website touts this score as one "lenders use".
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