CFPB releases report comparing credit scores

The Consumer Financial Protection Bureau released a report this week highlighting some of the differences the bureau found when comparing credit scores sold to consumers to those used by lenders when deciding whether to issue a mortgage or another type of loan.

The report says consumers may be unaware of the differences between consumer and lender credit score reports, which could cause them to pursue loans either too confidently or too negatively depending on what the lender's score says about their overall risk profile.

The most widely used scores are the “FICO ” scores sold by FICO — the brand used to identify the Fair Isaac Corp. A joint venture of the three main consumer reporting agencies — VantageScore LLC — also produces credit scores.

There are a number of FICO score models in use by lenders, and many other credit score models besides FICO. Consumers can also purchase a wide range of credit scores. While some scores sold to consumers are used by lenders, others are "either not used by lenders at all or are used only infrequently," the CFPB said in its report. "It is important to note that many of the credit scores sold to lenders are not offered for sale to consumers," it said.

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