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Home.com Study Shows Popular Free Credit Score Is Inflated by 20 Points On AverageRelying on an inflated VantageScore® can lead to thousands in unexpected closing costs on a home loan Homebuyers can get their FICO® Score for free using Home.com's ScoreGenius™ MADISON, Wis., May 16, 2022 /PRNewswire/ -- A new study by Home.com revealed VantageScores® from a popular online credit monitoring service were 20 points higher on average than FICO® Scores used by lenders. Home.com's new service ScoreGenius™ shows consumers FICO® Scores, helping consumers avoid thousands of dollars in unexpected closing costs on a home loan. Home.com Study Shows Popular Free Credit Score Is Inflated by 20 Points On Average Read the full study summary here. FICO vs Vantage credit scores Study findings Fifty-four percent of prticipants had a VantageScore® that was higher than their FICO® Score. Within this group:
How credit score affects mortgage costs On a $300,000 loan with 15% down:
These are a few scenarios where a homebuyer's understandable overconfidence in their credit can lead to unwelcome news when they apply with a mortgage lender. Still, some homebuyers have a FICO® Score that is higher than their VantageScore®, which could translate into the welcome surprise of more loan options and lower mortgage costs. The survey asked 96 participants to report the difference in the VantageScore® from a popular online credit monitoring site and the score from Home.com's ScoreGenius™, which uses the FICO® Score 4 model used by mortgage lenders. Both platforms are free and use a "soft pull," meaning there's is no harm to the users' credit scores. Home.com launched ScoreGenius™ in early 2022 as one of the first sites to offer consumers a better picture of their mortgage creditworthiness with a free soft pull of their FICO® Score. Check your FICO® Score for free on ScoreGenius™. About Home.com Home.com is a multi-media resource for people looking to learn more about homeownership. Featuring news, articles, videos, and social media content, Home.com aims to educate prospective homebuyers before they embark on a major life decision. Home.com is owned by Fairway Independent Mortgage Corporation (NMLS #2289), a full-service mortgage lender with a wide array of products that help make homeownership more affordable. Based in Madison, Wisconsin, Fairway is dedicated to finding great mortgage options and providing some of the fastest turn times for its borrowers. View original content to download multimedia:https://www.prnewswire.com/news-releases/homecom-study-shows-popular-free-credit-score-is-inflated-by-20-points-on-average-301547699.html SOURCE Home.com |