There is a new credit scoring model on the horizon. As a matter of fact it is already in use. Beware because you may have misinformation based on the fact that you are working on the old model and a consumer may be looking at a new model.

True Credit

Trans Union, Equifax and Experian all have credit monitoring sites where a consumer can purchase their credit reports, monitor them and even manage their credit scores. This is very useful to make sure you have the best credit scores to be able to qualify for financing. One issue is the these sites have migrated to a new credit score model which is different from what is used by lenders. It is estimated that the lenders and the credit report resellers will shortly move to this "advantage model". This means a 700 credit score at True Credit is not a 700 credit score by lenders.

Advantage Scoring Model

One Major difference with this new scoring model is that under the old system credit scores ranged from 350 to 850 or 900. The new system the range is 500 to 999. So someone who had a score in the mid 700's would be considered has having excellent credit under the old system, but under the new system they may or may not qualify for the loan. There has not been a table published to reconcile the two scores but suffice it that under the new system a credit score may be 100 points or more higher.

Ultimately the customer really does not know if they would qualify for financing or not based on credit scores alone because they do not match and there is no way to accurate reconcile the two. This takes you back to having the lender pull your credit because you really do not know what your score is.

Credit Scores

In reality your credit score rarely qualifies you for financing. The credit score usually only disqualifies those whose score is too low. The final approval is based on a review of the credit. Make sure you continue to pay your bills on time and keep your balances as low as possible relative to your high credit limits and you will qualify.