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Credit Scores Are Not Created Equal !

Fico Scores/Reports
Do you know your credit score? You don't? It's no wonder since you never know what you are getting when you get it. Did you know you can have a difference credit score depending on which credit bureau is providing it and just because you receive your score, that doesn't mean its the same score your lender is evaluating you. Confused yet?

Well I certainly was recently when researching for my score and seeing a significant difference between the 3 bureaus and based on how I received it.

So after searching around, I found a great article which explains the difference and where you can get a true FICO score to get the best idea of where you stand.

Check it out below:

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Saturday, March 26, 2005

Why credit scores don't always add up

By MICHELLE SINGLETARY
SYNDICATED COLUMNIST

Humorist Mason Cooley once said, "Every path to a new understanding begins in confusion."

That quote applies to e-mails I received from confused readers, who recently ordered their credit scores to gain a better understanding of where they stood credit wise.

In one case a husband and wife paid for and got all six of their credit scores (one for each of them from the three major credit bureaus). The scores ranged from a low of 602 to a high of 712.

But when a mortgage bank pulled the credit scores not long after the couple did, their scores were significantly lower, ranging from 598 to 649.

"Why are our scores from the mortgage company different than the ones we pulled online?" the husband asked. "Shouldn't they be the same scores I pull from the three credit bureaus?"

Another reader from Los Angeles wrote that his wife bought her credit score online from TransUnion. The score she received was 864. Three days later, after applying for a home equity loan, the score the lender got from TransUnion was 775.

"That's a drop of over 67 points. It doesn't seem plausible," the reader wrote.

There's nothing amiss here. Here's why.

Most of the credit scores you buy or get free online are not the exact ones used by lenders. The gold standard is what's called a FICO score, named after the San Rafael, Calif.-based Fair Isaac Corp., which devised a mathematical model to predict the credit risk of consumers based on information in their credit report. FICO is the model most widely used by lenders.

It's only been in the last few years that consumers could even buy their credit scores, three-digit numbers that are generated using information from their personal credit files. The higher your score, the better credit risk lenders think you are. A high score often translates into better rates on the money you borrow.

All three major credit bureaus -- Experian, TransUnion and Equifax -- use different scoring models, including FICO, which ranges from 300 to 850. Lenders also use different credit-scoring models, including FICO. Is there no wonder there is confusion?

Several years ago, largely because of pressure from consumer groups and public officials, the bureaus began selling credit scores to consumers. It was long overdue. Now, knowing their scores, people can take steps to improve their credit ranking.

Equifax and Fair Isaac teamed up to provide consumers with their FICO credit scores. The other two credit bureaus, TransUnion and Experian, decided instead to sell to consumers a score that was similar -- but not the real McCoy -- to the FICO score.

"The confusion and irritation of (consumers) is understandable," said Craig Watts, public affairs manager for Fair Isaac. "It could be avoided if Experian, TransUnion and their various consumer Web sites would only be upfront to consumers about the nature of the consumer scores they sell -- they aren't FICO scores, they aren't widely used (if used at all) by lenders. They are at best someone's estimate of what the consumer's true FICO score is."

To be fair, Experian and TransUnion do have disclaimers that inform consumers that the scores they provide aren't FICO scores. But the information is buried in fine print.

When you order your credit score from the three bureaus, here's what you're getting:

# Equifax's credit score is called "Score Power." Even though this uses the FICO scoring mode, you may get a different score than one pulled by a lender because the information in your credit file is constantly changing, which means your score can change as well. The score you get this week may not be the same score a lender would get from the credit reporting company the next. In fact, the last two statements are true for any score you may buy.

# Experian calls its credit score product "PLUS Score" and is based on factors similar to but not the same as FICO. The PLUS Score ranges from 330 to 830.

# TransUnion's credit score product is also not a FICO score, but based on the bureau's own proprietary scoring model, which is why the Los Angeles reader's score was outside the FICO range.

So in addition to scratching your head, you may still be wondering which score to buy.

Well, keep this Cooley quote in mind: "In the theater of confusion, knowing the location of the exits is what counts."

At least you now know why you may have gotten a different score than one shown to you by a lender.

"The key message is that there isn't one credit score, there are a lot of different credit scores," said Heather Greer, a spokesperson for Experian.

I think the key message here is that until there is one uniform credit scoring system, consumers will continue to be confused and probably be forced to buy more than one score from one source to get a rounded picture of their credit standing.

Michelle Singletary welcomes comments and column ideas, though she cannot offer specific personal financial advice. Her e-mail address is singletarym@ washpost.com. Readers can write to her c/o The Washington Post, 1150 15th St., N.W., Washington, D.C. 20071.

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Well there you have it! So make sure you check with FICO and get the monitoring system, since that is where your lender will begin his search. You could even ask your lender which bureau he'll be using to make his determination.

But check regularly because it's your financial future.


Do you have any credit stories, suggestions, solutions to share? Don't forget to add your comment

Dr. Judith Rich: Follow Your Bliss: The Holy Work Of Living Your Dreams

Dr. Judith Rich: Follow Your Bliss: The Holy Work Of Living Your Dreams

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Seven Ways to Attract More Money

by Dr. Joe Vitale www.MrFire.com Want to attract more money? Wondering why you haven't attracted it when you've done everything you thought you needed to do? What really works when it comes to attracting more money, anyway? I've been studying the Law of Attraction for more than three decades. I've written several books about it, including The Attractor Factor and The Key. That's why I ended up in the movie The Secret, and then on Larry King and Donny Deutsch's televison shows, among others. I know how the Law of Attraction works, and I know why so many people don't clearly understand it. When it comes to the Law of Attraction, most people want to learn how to use it to attract more money first. After that, they'll wonder how to attract romance, cars, homes, happiness, and everything else. But money is the starting place for most people. So, how do you attract more money? When it comes to attracting anything -- and money in particular -- there are seven ways to do it right. Here they are: Give Money Away It sounds counter-intuitive but the more you give, the more you will receive (unless you block the receiving, which ties into the next step). Give openly and freely to wherever you received spiritual nourishment. Give on a regular basis, too. The rule of thumb is to give 10% of whatever you receive, but it's also smart to give more when you feel inspired to do so. Remember, give to the person, place, or group that has kept your spirit alive. Just ask "Where was I most inspired this past week?" and give to that source. And ask the question daily or weekly as the source will often change. Here's an inside tip: When most people give money, they do it with a tight fist. They don't give much. Why not? Because they're afraid. They're holding on. Well, the energy of fear will attract more things to fear. Instead, give money with an open heart and an expectation of return. Give in love. Get Clear Most people push money away with their hidden limiting beliefs, such as "money is bad" or "rich people are evil." Those are beliefs, not facts. Get clear of them and money will come to you (as long as you also do the next step). Getting clear is truly "The Missing Secret" to making the Law of Attraction work for you all the time. After all, it isn't your conscious intentions that are being manifested in your life, it is your un-conscious counter-intentions. For example, when you set a goal on New Year's day to stop smoking or date more, what happened the next week? You gave up your conscious goal for your un-conscious belief that you couldn't do it. You weren't in alignment with your intention. You werent' "clear." Most likely in your unconscious mind you have limiting beliefs about money, such as - a.. "Money is evil." b.. "Money will attract problems." c.. "Money will make me a selfish person." d.. "Wanting money is greedy." e.. "Rich people are snobs." If you have one or more of those limiting beliefs within you, do you really think you'll attract any money? In truth, you'll attract NOT having money. Why? Because your unconscious counter-intention ("Money is bad") will veto your conscious intention ("I now attract more money into my life"). Is it any wonder some people say the movie The Secret or the Law of Attraction doesn't work? Obviously, once you clear those hidden blocks/beliefs to your success, your success has nothing in the way of happening. The roadblocks are gone. I talk about ways to get clear in my new audioprogram, "The Missing Secret." One thing you can do right now is to simply question your beliefs. Become a belief detective and look for those limiting beliefs about money. When you release your inner blocks, you will attract more money. Take Action Too many people sit and wait for money to materialize in front of them. I believe in magic and miracles, but I also believe that your role in the process of attracting money is to actually do something to bring it your way. Act on your ideas. Now. "Money likes speed" is my favorite mantra. If you don't act now, you'll see your idea manifested in a store some day and somebody else will be attracting money from it. What can you do right now, today, to move toward creating something that will attract more money? Whatever it is, do it. When you doubt and second-guess yourself instead of taking action, you are demonstrating that you aren't yet clear (see second tip above) about money and your right to attract it. Act now and get rich. Support a Cause Most people push money away because they don't feel they deserve it. One way around this (while you still work on getting clear inside yourself) is to want money for a larger purpose. I created Operation YES to end homelessness. Raising hundreds of thousands of dollars (or more) for that cause will remove any remaining prosperity limitations within me. While I won't receive a dime from Operation YES, my working on its behalf will attract money to me in other ways, such as the contacts and goodwill I'll create. In short, want money for a larger reason than your own ego. This is a beautiful way to attract more money without wanting it only for yourself. Realize that when you are wealthy, you are better able to help family, friends, your community, and even the world. A good reason to attract more money is for all the good it can do for others, not just you. Ask yourself what cause would you support (or even create) once you attracted more money? Get Support One of the wisest things you can do to achieve any goal is create or join a master mind group devoted to it. I co-authored Meet and Grow Rich with Bill Hibbler for this reason: to teach you how to create a support group. The idea is to be around people who can keep your energy and inspiration high. While you can make progress alone, it's so much easier when you have support. This support can also come in the way of audiotapes, books, and other learning tools. I've been buying audios from Nightingale-Conant for more than thirty years for just that reason: it helps me stay focused on constantly growing and improving. Even when I was struggling, I went to the library and borrowed books and tapes to keep me informed and inspired. Today I can afford to buy my own materials, but it's only because I invested in my education every step along the way. I created "The Missing Secret" audio set to help people understand the practical use of the Law of Attraction. Again, all of this is support in helping you attract more money. Be Grateful This is huge. Be thankful for the money you have - which is probably considered true wealth by people starving in third world countries - and you'll begin to attract more money. Gratitude sends off a signal of appreciation, which brings to you more to be thankful for. Begin with whatever is in this moment that you can be sincerely grateful for. After I was homeless and while I was still experiencing poverty, I began this exercise by holding a pencil and being grateful for it. Once I truly experienced gratitude, it shifted my energy vibe so I could then experience more to be grateful for. Today I have much to be thankful for - from houses to cars to collectible guitars -- but it all began with a pencil. Look around and ask yourself what you are grateful for right now. Then get into that feeling. Do what you Love There's no sense in working at something you hate. If you are currently at a job you don't like, find a way to enjoy it for the time you are there while working towards doing your passion. Following your passion is the greatest secret of all when it comes to attracting wealth. Everyone from Donny Deutsch to Donald Trump to Bill Gates to little ole me agree that passion (combined with the other steps above) is your ticket to financial freedom. Even when I worked for oil companies back in Houston and didn't like my work, I found ways to do what I loved. I wrote my first book on my lunch hours. I spoke on weekends and sold my book in the back of the room. Over time, doing what I love became my life. And today it's my moment by moment wonder. Ask yourself what you would do even if you were never paid. That's a clue to what you should be doing and of course finding a way to be paid for it. You can attract more money from love. Finally, expect success. The mindset of expectation - expecting that you are now attracting money and playfully looking around, asking "I wonder how big money will come to me today?" - will keep your brain turned on to seek and find opportunities. You of course then have to take fearless action when you see them. Go for it! Dr. Joe Vitale www.MiraclesCoaching.com

The Cure for Despair

by Dr. Joe Vitale
October 26th, 2008
www.MrFire.com

During dinner the other night, one of the people in our group looked at me and asked the question I didn't want to hear -

"How did you become homeless?"

By now most people have heard my story of being on the streets of Dallas in the late 1970s and struggling in poverty in Houston for many years after that. Some of it is explained in my new audioprogram, The Awakening Course.

But I had never explained exactly how I ended up in such dire circumstances.

When I answered the question at dinner, everyone at the table stared at me.

The woman who asked the question sat there with her mouth open and eyes un-blinking.

She asked, "Why have you never said this before?"

My friend Mark Ryan was sitting there, also staring, and said, "As long as I've known you, you've never told this story before. It's riveting. This changes everything."

Changes everything?

Riveting?

They all said I had to tell the story now.

"Given the current financial crisis and with people losing their homes and their jobs, this story needs to be told more than ever before," Mark said.

I heard them and realized I agreed.

So here's the story...

I knew I wanted to be an author when I was a teenager. I wanted to write books and plays that made people happy. Everywhere I looked I saw un-happy people. I believed I could help them with humor and stories.

During that time of the mid-1970s, I watched sports. I don't today but back then the Dallas Cowboys were the rage. Roger Staubach and Tom Landry were heroes. I got caught up in the excitement and felt the place for me to make my name was in Dallas, Texas.

I lived in Ohio at the time. Born and raised there. I worked on the railroad as a trackman, doing heavy labor all day long, working weekends and summers since the age of five.

I saved my money, packed up my bag, and took a bus to Dallas. It took three days to get there.

I was lost in the big city, of course. Being born in a small town in Ohio didn't prep me for the hustle and bustle of a city the size of Dallas.

Before long, I wanted out.

But I still wanted to be an author.

At that time major companies were building oil and gas pipelines in Alaska and the Middle East, and offering to pay big bucks if you were willing to go to either place.

I wasn't keen on going to a foreign country and doing more labor, but I saw a chance to make money, save it, and then go on a sabbatical where I could write for a few months or even a year.

It seemed like a brilliant strategy.

I answered one of the newspaper ads that promised to get me pipeline work at a extraordinary hourly wage. I went in their office, met an upbeat sales person, and ended up giving him all of my money - my entire savings, about a thousand dollars at the time - based on his promise that I'd have overseas pipeline work in a week or two.

You might guess part of what happened next - but you won't guess all of it.

Within a week or so, the company that took all of my money went out of business.

Their doors were closed, no one answered the phone, and no forwarding addresses could be found.

Shortly after that, the company went bankrupt.

And not long after that, the owner of the company committed suicide.

There was no one left to try to get my money back.

I was alone.

I was broke.

I was in Dallas, far from home.

I confess that my ego got in the way here. My family back in Ohio would have taken me back in and welcomed me back home. But I was head strong and determined to somehow survive.

Well, I did survive - by sleeping in church pews, on the steps of a post office, in a bus station.

It wasn't an easy time, as you can imagine, and I never used to talk about it. It was too embarrassing.

When I told this story at dinner, everyone agreed I had to share it with you.

They said that people are finding themselves in the same situation - they trusted a government, or a corporation, or a person, or a bank, and now they are losing their homes and their jobs.

Hearing that I went through the same thing three decades ago and not only survived but prospered to a level that the Joe Vitale of thirty years ago could hardly imagine, ought to be inspiring to you, too.

I got off the streets and out of poverty by constantly working on myself - reading self-help books, taking action, scrambling at times by taking whatever work I could find, but always always always focusing on my vision: to one day be an author of books that helped people be happy and stay inspired.

If you're in a place right now that doesn't feel so good or seem too safe, I urge you to remind yourself that this is only temporary.

This is the cure for despair.

As I say in my book, The Attractor Factor, this is simply current reality, and current reality can change.

You can help it along by doing what you know and need to do.

But remember, the sun will shine again.

It always does.

Your job right now is to focus on what you want and keep it in sight.

Yes, keep taking action;

yes, stay positive and surround yourself with positive people;

yes, be of support to others.

But remember, if I or anyone else can survive homelessness, poverty, job loss, or any other hard time, then you can survive it, too.

Please hang in there.

One last thing:

I admit that there were times I wanted to throw in the towel and get myself out of this life.

Thank God I stuck around. Had I left early, I would have missed a life of magic and wonder, success and fame I never dreamed of before, priceless relationships and experiences, and more.

I have no idea what wonderful good is headed your way - and neither do you.

What you have to do is stay the course and follow your heart.

And remember -

Expect Miracles.

Ao Akua,

Dr. Joe Vitale
Founder of the movement to end homelessness