Personal Finance

Bank pulled Credit score - much different than what I see online

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  • Jan 21st, 2014 8:28 pm
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[OP]
Sr. Member
Apr 17, 2007
732 posts
13 upvotes
Oshawa

Bank pulled Credit score - much different than what I see online

So I'm applying for a new mortgage and the banks mortgage rep said my credit score was around 750. I pulled my transunion score tonight and it was actually 674. What's going on here? Any help would be appreciated. This discrepency seems quite high.
15 replies
Deal Addict
Jun 29, 2007
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Maybe they pulled it from Equifax and yours is from Transunion. Equifax and Transunion have their own proprietary method of calculating credit score?
[OP]
Sr. Member
Apr 17, 2007
732 posts
13 upvotes
Oshawa
Thx for the reply. Negative, I checked equifax and the enquiry is only present on transunion. It's an rbc mortgage app which from my understanding use trans. My equifax score was also in the 670 range.

I won't complain if they see 750, but I'm just curious as to how and why? I feel like subscribing to credit monitoring from both providers is a rip off if what we see is not actually what the banks see.
Newbie
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May 22, 2012
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CALGARY
I have the similar thing it when I look at mine and what RBC mortgage specialis see is different. Why is that like 37 pionts different. I am happy that it is higher. because now approved for full mortgage and moving to our new place in may...
[OP]
Sr. Member
Apr 17, 2007
732 posts
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Oshawa
Bump. Really need to figure this out please
Deal Fanatic
Mar 24, 2008
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espanolguy wrote:
Jan 18th, 2014 10:18 am
Bump. Really need to figure this out please
Your score came up higher at the bank, what's the problem? Why do you "really" need to figure this out?
Deal Addict
Feb 24, 2007
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I've had the same thing happen, my score provided by Transunion was crap level, I think even lower than yours, yet according to banks when I was shopping around rates, I was really high, though they didn't give me the score, they said I had an "A" according to their systems.
[OP]
Sr. Member
Apr 17, 2007
732 posts
13 upvotes
Oshawa
Because we don't want to loose leverage in attempting to negotiate our rate, if it got to that point. It's a lot easier to make a decision of this magnitude when you are fully informed. Basically, I want to ensure it's not a mistake that may get caught later on in the process, pre-closing.

ksgill wrote:
Jan 18th, 2014 10:28 am
Your score came up higher at the bank, what's the problem? Why do you "really" need to figure this out?
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Aug 18, 2005
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I recall something about how the credit score you can get when you purchase it from the bureau is not necessarily the same thing that the banks and other credit-granting organizations will use. Furthermore, the score from the bank may be a proprietary, internally calculated score that is based partially on your bureau report and also on their internal reports and private data based on your usage of their products.

For example, if you always pay your credit card 5-15 days late, this will never show up on your bureau report because EQ/TUC only care about 30+ days late. However the bank knows about this if they are the one providing the credit card, so it might reduce the score that they calculate.
Sr. Member
Nov 28, 2010
979 posts
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Toronto
I had same experience last year. My online score was over 100 points less than that pulled by bank. And it was same bureau - Equifax. As well there was a discrepancy for about 100 points between Equifax and Transunion with the latter being higher (I pulled my score from both). I understand the difference between the two bureaus - their algorithms are different. I don't really know why results from the same bureau are different and depend on who inquiries. My only guess is bank result somehow was post processed by internal system and some kind of algorithm that considers my history with the bank (I am a client for 10+ years) was applied to the original score, which gave me additional points.
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Apr 16, 2007
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Financial District B…
espanolguy wrote:
Jan 17th, 2014 8:22 pm
So I'm applying for a new mortgage and the banks mortgage rep said my credit score was around 750. I pulled my transunion score tonight and it was actually 674. What's going on here? Any help would be appreciated. This discrepency seems quite high.
There are a couple of issues that need exploring.
First is the 'actual' update date of your TU bureau data. FI's all pull real time bureaus. On the other hand consumers may not see real time based on the bureau subscription they a subscribe to. This is speculation on my part as I don't pull consumer bureaus. If the consumer bureau updates every 3 months as indicated on EQ's website(suspect TU will be same) then any consumer bureau pull and its data and score in between the 3month intervals will all be the same until the next update. *unsure if consumer free bureau is real time. Heard conflicting accounts of info on my end.( are you getting a uptodate bureau as per data of your free consumer pull or is the data aged from last update?)
This in turn means any credit product payments and/or reduction in overall utilization will not be reflected.
This plus the additional sup risk score values that each financier adds may explain the large fluctuations in values. You'll have to explore this on the consumer side.
Behaviour risk adds contribute to FI's values where bureaus may not reflect.(except BNI)
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again
Deal Addict
Jun 29, 2007
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That's a very good point. I signed up for the free 1 month Equifax trial and the bureau report did not change from the 1st day I pulled it. The "report update date" did not change during the entire 1 month trial.
mikeymike1 wrote:
Jan 19th, 2014 11:41 am
There are a couple of issues that need exploring.
First is the 'actual' update date of your TU bureau data. FI's all pull real time bureaus. On the other hand consumers may not see real time based on the bureau subscription they a subscribe to. This is speculation on my part as I don't pull consumer bureaus. If the consumer bureau updates every 3 months as indicated on EQ's website(suspect TU will be same) then any consumer bureau pull and its data and score in between the 3month intervals will all be the same until the next update.
This in turn means any credit product payments and/or reduction in overall utilization will not be reflected.
This plus the additional sup risk score values that each financier adds may explain the large fluctuations in values. You'll have to explore this on the consumer side.
Behaviour risk adds contribute to FI's values where bureaus may not reflect.(except BNI)
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Feb 15, 2008
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Yeah Jucius hit the nail on the head, each institution will, with their own data, and based on different weightings of external data, compute a score. For instance, some lenders' algorithms come down heavily on people who use 'subprime' credit (ie: financing your sofa, for example). Others actually embrace people such as that. The algorithm is custom-tailored to every business. Of course, each lender keeps their own proprietary records. Stiff RBC in a bankruptcy, and no matter how much you've 'repaired' your credit score, even decades later, and they will always keep that in mind.
TodayHello wrote:
Oct 16th, 2012 9:06 pm
...The Banks are smarter than you - they have floors full of people whose job it is to read Mark77 posts...
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Oct 23, 2006
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Speedy1 wrote:
Jan 19th, 2014 12:53 pm
That's a very good point. I signed up for the free 1 month Equifax trial and the bureau report did not change from the 1st day I pulled it. The "report update date" did not change during the entire 1 month trial.
It won't. The one month free trial is only going to give you 1 score from the 1st day, and it may already be 2 months old.
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Apr 16, 2007
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Financial District B…
Jucius Maximus wrote:
Jan 18th, 2014 12:23 pm
I recall something about how the credit score you can get when you purchase it from the bureau is not necessarily the same thing that the banks and other credit-granting organizations will use. Furthermore, the score from the bank may be a proprietary, internally calculated score that is based partially on your bureau report and also on their internal reports and private data based on your usage of their products.
That is because there are many different types of credit products and each credit product entails its own underwriting policy guidelines.
When I first entered into my finance career the bureau scores we're used as a tool for determining creditworthiness for everything. That can't be done now as payment behaviour patterns vary from one credit product class to another.
ie: if a client is money tight on any given month end he/she generally will skip the min CC payment(s) to fill its full payment obligation for auto payment or mortgage.

General bureau scores are heavily weighted towards revolving credit accounts. Someone who's been tardy 4 different times during the year on revolving may or may not affect auto loan granting or mortgage granting but will indeed affect another CC app.
If you're following me, yes a client may have a slightly different score for a CC application vs an auto loan app.(if the FI subscribes to sup auto score values or other 'installment' algorithm adds)

Historically instalment loan discipline has shown to have far greater value than revolving. With this said bureau scores will be tweaked slightly by FI's for the credit products your applying for(auto, mortgage, LOC Heloc etc)


Jucius Maximus wrote:
Jan 18th, 2014 12:23 pm
For example, if you always pay your credit card 5-15 days late, this will never show up on your bureau report because EQ/TUC only care about 30+ days late. However the bank knows about this if they are the one providing the credit card, so it might reduce the score that they calculate.
EQ and TU don't report. FI's report.
There's a fine line as to R2/I2 reporting. There's no law but majority of FI's act differently to definitions.
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again

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