One of the biggest issues or misunderstandings with regards to Credit is when people use Credit Karma and think they have a qualifying Credit Score for a Mortgage, a Mortgage Lender pulls Credit and the Mortgage Credit Scores are sometimes significantly lower.

The reason for this is that Credit Karma is looking at a Vantage Score 3.0 where for a Mortgage, Lenders are looking at Experian FICO 2, TransUnion FICO 4 and Equifax FICO 5.

The older the FICO Scores, the Longer back in your Credit History they Look.

With FICO 8 Credit Scores or Vantage Scores 3.0 they are looking at your last 2 years. This is because they are only looking to give you $3,000 Credit Card Limits or $30,000 Auto Loans.

FICO 2, 4, 5 Scores, they are looking further back because they are considering a $300,000 - $500,000 Mortgage and they want to make sure you have not just gotten your act together in the last 2 years. They want to make sure you have been good and clean for 5-7 years.

If you want to lean more about how the different FICO algorithms work or how to build a 700 Credit Score, make sure to SUBSCRIBE and or join my 700 Credit Class.

www.700CreditClass.com

If you want a 1 on 1 Coaching Call, send me an email.

info@iteachcredit.com

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