Experian said it had terminated a partnership with
a U.S. company that allows consumers access to their
credit scores.
Steven Wagner, Experian's president of consumer
information services, said the company, Fair Issac,
was "simply unreasonable" in contract
negotiations, USA Today reported
Consumers who apply for mortgages will be able
to get all their FICO credit scores through lenders,
Experian said.
Most lenders, however, use the FICO scoring system
developed by the Minneapolis-based Fair Isaac Corp.,
which rates an individual's creditworthiness on
a scale of 300 to 850.
Consumers have three FICO scores, based on the
data provided by each of the three national bureaus,
including TransUnion and Equifax.
Currently, individuals can visit a Fair Isaac site,
myFICO.com, and purchase one or all of their FICO
scores. As of Feb. 14, however, consumers will be
able to see only the scores based on data provided
by TransUnion and Equifax.
The decision comes as lenders are raising their
credit standards, making it more difficult to qualify
for all types of credit, from credit cards and auto
loans to mortgages. And as the economy has deteriorated,
the definition of a good score has inched higher.
Getting the best rate on a loan — or any loan,
for that matter — can be a matter of a few
points.
Experian, which is based in Ireland and has U.S.
headquarters in Costa Mesa, sells its own proprietary
PLUS credit score. It also sells a VantageScore
ratings system that it developed with the other
two credit bureaus, TransUnion and Equifax Inc.
Without ready access to FICO scores based on Experian’s
data, consumers can at least check their Experian
credit reports periodically to be sure there are
no errors.
