Monday, August 6, 2012

What is CoreScore?

Posted by Ed Hughes

CoreScore from CoreLogic is a fairly recent development to help lenders assess consumer financial behaviors.

The CoreScore bases its score on a specific consumer credit report that also looks at non-traditional data that may not be included on a credit report from Equifax, Experian, and/or Transunion. The CoreScore is supposed to provide lenders a more complete portrait of your financial habits and behaviors in addition to your tradition consumer credit report.

The FICO score is currently the most widely used consumer credit score method, but FICO actually worked with CoreLogic to help develop the CoreScore. The CoreScore is meant to supplement the FICO score and predict the direction of your FICO score.

Some items included in the CoreScore that aren’t included in your FICO score include:

Applications for payday loans

Rental payments, specifically missed payments

Missed child support payments
The CoreScore also includes information that may already be on your credit report, but the information on your CoreScore report is much more detailed. For instance, both your consumer credit report and CoreScore will list any car loans you have. CoreScore, however, will likely show your payment history where your typical consumer credit report may not.

The CoreScore report also lists court records and other legal matters. Any past financial issues will have more of an impact on your CoreScore.

The other difference between a CoreScore report and a typical consumer credit report is the quick turn around at which information appears on the report. Many new loans may not show up on a typical credit report for 60 days, but that same information can be used for your CoreScore in as little as 23 days.

CoreScore is also evaluating the usefulness of including information such as cell phone bills and utility payments, meaning non-credit payments could become a regular part of your credit profile.
Not all mortgage lenders are currently using the CoreScore as part of the loan qualification process since it was just rolled out this year, but in the future, many lenders may use the CoreScore in addition to your FICO score to determine loan approval.
Your CoreLogic credit report is currently available to you. Under the terms of the Fair Credit Reporting Act, you are entitled to one free copy of any consumer credit report each year, including your CoreLogic report. You can contact CoreLogic for information about obtaining your free report at 877-532-8778 .
Additionally, the CoreLogic report is expected to be added to so that it is easier to access, in addition to the credit reports from the three major credit bureaus.

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