QFT...esp now young 'kids' are coming from their parents home with 720 or higher FICOS thinking they can dictate the terms to be the best rates possible. Problem is they usually have at most a simple credit card with maybe a $10k limit if they are lucky, but usually $5000 or less. They do have good jobs and usually a car payment (however; many times cosigned)...either way they have usually about 2-5 years max of credit history and none paying on a serious balance.
Even when one has the money going from $500 a month for a car payment to a $2500 mortage payment is a shock.
I wouldn't be exaggerating saying at least once per day a customer is off the chain over what our loan underwriters reply on their REAL credit picture over what something like MyFICO tells them.
Don't get me wrong though, monitoring credit is a good thing and a FICO score will usually scale to beacon and other's just that they will usually be 50-100 points under that uber score.
This is why I am pretty adamant that kids living at home longer are actually screwing themselves in the long run rather than helping. Once that goes critical mass (like in the 50's when dual income households became popular), one is going to have to rely on 3 or more incomes to really make ends meet at the middle class levels or below. The 50's have proven that pricing of homes and cars will rise to the level that household incomes can support due to increased demand and willingness to pay a little extra.
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