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  1. #1

    Default Classic Scores Vs Auto Enhanced Models

    In the last 4 years of credit rebuilding I have discovered some interesting information on how TransUnion, Equifax, and Experian design their scoring models based on the types of products that lenders are selling to consumers. For Example, in the last 2 days I decided to do some home work of my own, and heres what I found. There are various types of scoring models used, in todays banking industry it seems there is 2 that are very popular, one is called a Classic Model Score, often referred to as an 04 version, then there is also the Auto Enhanced version, often referred to as the Auto Industry option, which seems to weigh more heavily on auto installment. The Auto Industy option comes in two versions, (04) and (08), from what I have researched, the 04 model does take into account authorized users, often referred to as piggy backing, the 08 model however doesnt factor those accounts in at all! And depending on what formula the lender is using, 04 or 08 model, can have a huge impact on what score will be generated from that formula. I have been using myfico.com was a way to keep track on my rebuilding progress, here recently I pulled my TransUnion score on Myfico, it was a 630 according to their scoring model, Classic 98, however, when my TransUnion report was pulled using a Classic 04 model, it showed a score of 656, which is a 26 point difference compared to myfico. And the really interesting part, thanks to a credit union that uses TransUnion auto enhanced 04 model, my score came in at 633. Now thats only a 3 point difference compared to myfico, I just recently opened a new auto installment at my bank, and only the first payment is reporting, I am sure once I pay that balance down 35% or more, my auto enhanced score should keep improving. So what I have found myfico is a great way to guage your progess, but is way outdated compared to what lenders are using by todays standards.

  2. #2

    Default Re: Classic Scores Vs Auto Enhanced Models

    When you read Patrick12's information it is a lot to absorb. It is well written and captures the credit picture well! I too have experimented with the various credit bureaus and other reports and can confirm his findings for myself. Myfico.com was written up a couple of years back and it stated then they used products as stated. Taking off from the findings I can add that if you purchase an Equifax three in one report the results are fairly close and accurate for FICO Scores. If you utilize Transunion's three in one credit scores you will get the new Vantage Scores which are significantly different. Then if you use Experian's Credit Expert three in one report you get their Plus Scores. What to do...? There are formulas you can use to convert between the different scoring systems.

    For myself, Equifax has me in the 720's, Experian (330 to 830 scoring range) sees me in at 761 and Trans Union sees me in the 790 which is a "C" rating. I looked up the model for the Vantage Scoring (501 to 990 scoring range) and it really didn't look that much different from FICO Scoring (300 to 850 scoring range) but the results sure hit me hard (note most lenders have treated me as though there was "excellent credit" in my report - go figure). Now scoring is all based on the date and time you pulled the reports. I pulled all three bureaus within a few minutes of each other for a comparison.

    Gets better, insurance companies (LexisNexis Personal Reports) use a modified version of FICO type scoring now and when you purchase a vehicle and desire dealer financing you may find the dealer using a modified version of the FICO scoring system (you cannot see it or review it - privacy and secrecy). So why get concerned, every bank, financial institution, department store and other vendors have the opportunity to adjust scoring models for the quality of risk they want (don't forget mortages, landlords, employers, utilities, cell providers...etc). Anotherwords, the best you can do is obtain an idea of where you stand. Who ever you may do business with will likely have their own version of a scoring model and you cannot usually obtain access to it so a close estimate of your score and accurate information in your credit bureau report(s) is your best protection (position).

    Is it frustrating? No, not really. Even in the manual credit report days, all this type of scoring went on. The difference is you had no access to it and didn't have the knowledge of the process that exists today. Another way to put it at the time "ignorance was bliss". We trusted even when it was wrong?!
    Last edited by Wanderer; March 11th, 2011 at 04:02 PM. Reason: Supp Info & typos

  3. #3

    Default Re: Classic Scores Vs Auto Enhanced Models

    You know whats really interesting Wanderer? I disputed my Chapter 7 Bankruptcy and two paid civil judgements back last fall, and TransUnion removed all three! My BK was discharged back in 2002, however once my bankruptcy was deleted my credit score dropped 50 points! Why I asked myself, I decided to so some research and I found out, once a BK either falls off or has been deleted, your credit report falls back into a different type of catagory, so apparently the fico formula scores bankruptcy cases differently that ones who havent filed at all! It took my credit score almost 6 months to recover once my BK was deleted from my credit file. I also tried the same thing with Equifax and Experian, however they were able to verify the all three public records and kept them on my reports.

  4. #4

    Default Re: Classic Scores Vs Auto Enhanced Models

    Quote Originally Posted by patrick12 View Post
    You know whats really interesting Wanderer? I disputed my Chapter 7 Bankruptcy and two paid civil judgements back last fall, and TransUnion removed all three! My BK was discharged back in 2002, however once my bankruptcy was deleted my credit score dropped 50 points! Why I asked myself, I decided to so some research and I found out, once a BK either falls off or has been deleted, your credit report falls back into a different type of catagory, so apparently the fico formula scores bankruptcy cases differently that ones who havent filed at all! It took my credit score almost 6 months to recover once my BK was deleted from my credit file. I also tried the same thing with Equifax and Experian, however they were able to verify the all three public records and kept them on my reports.
    You hit the nail on the head. As memory serves me... there are categories (seems to me ten) and when you change categories your score can change such as Bankruptcy which is one of many... (note you do NOT know when you change categories and FICO will NOT tell you). You sure have studied and done your homework. It is my hope that this discussion of findings of facts help some of our FG readers who have pondered these issues in the past. Both of us have independently researched these questions and come back with the same conclusions. Nice work and well put!
    Last edited by Wanderer; March 11th, 2011 at 06:18 PM. Reason: Supp info

  5. #5

    Default Re: Classic Scores Vs Auto Enhanced Models

    Interesting. Today I pulled a "Three in One" credit report from Equifax and then pulled a Myfico.com focusing on Equifax and the scores matched. They have been close before, but now they are exactly the same. Since they have not used exactly the same models or years in the past (at least not all the time) it was a test. Myfico.com lost a lot when they got into a dispute with Experian so I quit using them when it was only TU and EQ. Today I was curious.

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