Why Is Your Credit Score Lower When a Mortgage Lender Runs Your Credit? Running Credit Scores 2020 💳 - YouTube

Today we're going to talk about credit scores now

first of all

I'm, not a credit expert. I never pretend to be a credit expert. I always tell people if a lender is giving you credit advice

Run, right we're not credit experts

We shouldn't tell you

We shouldn't look at your credit report and say hey

If you pay off this this and this this your score will go to this. We don't know we're not credit experts

So that's my disclaimer and this is not a video about fixing your credit. So

What this video is about?

is

Why is my credit score lower?

When a lender runs it

Okay, we get that a lot and the reason is a lot of people are looking at certain sites such as credit karma

They might be looking through like their credit card. Which runs one bureau

Okay

As a lender when I run your credit i'm running it through experian transunion and equifax and I use the middle score

So if you have a 700

A 680 and a 650 i'm going to use the 680

Now you might be like but I looked at my credit and it was 700

Well, maybe the bank card you were looking at was off of that

Bureau, okay

But what happens more often than not is that the scores you're looking at are based off of a certain amount of debt

So a credit card company

For instance might give you an estimate of your credit score based on if you're opening a new line of credit

Now the way your score is determined is they're assessing risk

So is it risky for you to have a credit card, you know if it's 10 000?

Maybe it's not that big of a risk

So the score is higher if i'm looking at a million dollar mortgage, maybe the score's lower because that may be a bigger risk

So what's important to realize is that when a lender is pulling your credit? We're pulling it based on a different set of parameters

We're pulling it with the intention of taking out a very large amount of debt. So

and and I know the credit karma thing really upsets people because they're like but credit karma and I actually

I like credit karma. I like that. It's free. I like that

It tells you if stuff's gone on your credit. I like they have some really good articles

um, but it's important to know it's not the be-hall end-all and if you go through their disclaimers

They'll say that they're not a mortgage company pulling your credit. Okay, so

if let's say right let's say you're

i'm gonna buy a house conventional minimum credit score is 620. And if you're looking at credit karma, and you're at 620

There's a really good chance that when I pull your credit

It's going to be lower. If you're looking at credit karma and your score 700, let's pull credit, right?

There's all these different ways that lenders are trying to determine how and when to pull your credit

But it's not an exact science and that's something that's very frustrating for people because they're like well wait

why don't you know exactly this or that and it's like

The credit bureaus have done a very good job of making sure people don't know exactly what to do. It's their private

Proprietary scoring model that's why as lenders. We're not supposed to give you a copy of your credit report because it's their private proprietary

Scoring model. Okay, so

If you're frustrated because you feel like your lender's lying to you because they're telling you a score lower than what you're seeing online

Just ask them to send you a copy of the scores. They can always do that

They can't send we're not supposed to send the full credit reports

And I actually did some really interesting training because since i'm licensed in 43 states, I do so much training guys

It's crazy and they had a really good example of what happened

So basically what happened is this woman? She knew she had filled out

An application for bob jones online and she had all the basic information

But she didn't have everything so she after she filled it out

They didn't know it was a woman that they thought it was his wife and she's like, oh hey

Yeah, I filled out the app for my husband

but you know I couldn't um

Uh, I just I got confused. Can you send me a copy of the credit report?

I think there's an error and they sent a copy to the wife of the credit report. It wasn't his wife guys

It wasn't his wife

it was

an ex-wife in this case that had enough information and was trying to get information from his credit report based on his spending for

a court case

Yeah

deviant right, but then there's also all these identity issues where like, you know,

You can basically get a credit report with names social security and date of birth

The actual credit report itself gives so much more detail for people who are trying to steal your identity

That is why they are not given out it is for your protection

Okay

You can go to get a free credit report. There's like nine different places

You can go and get a free credit report so that you can see what's on your credit

So if a lender is saying i'm not going to give you a copy of the credit report

it's not because we're trying to hide something it's not because we're being deceitful deceptive or

Mean it's literally because we could lose our licenses over it

Yeah

I was like

Because I always been like and you probably there's probably older videos where i'm like if they won't give it to you they should

Ah after hearing some of the cases

around

Why the bureaus don't want you to give it out? I was like, oh, yeah, like never again. Like no. Thank you, ma'am

um because it is it is staggering how

Smart criminals are and then also like how smart ex?

Exes are you know, whether it be an ex-wife an ex-husband an ex-boyfriend or ex-girlfriend, you know?

We see stuff even on our side like sometimes i'll pull someone's credit and i'll be like hey

Like we need to go through this. They'll be like why I just have a car payment and i'll be like no you don't

what and

There's like 30 credit cards and i'll go through it

I'll be like you have a kohl's card you have this you have that you have this. No, I don't. No, I don't

Well, guess what?

Her ex-boyfriend had all of her information and had opened up credit cards in her name. Yeah, and he was making payments on them

we went to the mailing address and I was like, did you ever live at the

de and she was like

Ex-boyfriend's house

And I don't know what he was doing with the cole's card like that feels like more of a woman thing. So I

don't know if there's another woman involved maybe guys like kohl's I don't know feel free to chime in but

the bottom line is

Credit credit credit if a lender's telling you your score's lower than you expected. They are not trying to mess with you

They are not trying to get in your head it is because we are looking at a larger amount of debt

We have zero control. I keep on looking out the window because i've got these patio umbrellas that are about to fly

And it's hot and it's california. So

It's a little scary

um anyways

They're not trying to torture you it's just because it's looking at bigger debt in terms of your credit score if you're like, oh well

Let's say you're at 619 and our minimum requirement is 6 620

I can't do anything. I have zero power

Like I can't magically make your credit score go up. I can recommend you to a credit expert that will fit fix your credit

but

If a lender is going to tell you how to fix your credit like in detail and what collections to pay off and everything else

Run get a credit expert guys like a real one and i'm sure i'm gonna get 32 spam

Things on this if you see anyone at the bottom of this video saying that their credit was fixed by a company

It's a robot. If you see anyone saying that they offer great credit repair. It's probably a robot. So

Be very careful about who you use but bottom line

Credit karma mortgage lender do not match

Bank polling mortgage lender 50 50. Okay, that's the review