Fico Score Vs Credit Score - Is There A Difference?FICO score and credit score are regarded by a lot of people as the same while others may have never even heard of a FICO score. The three main credit bureaus, Equifax, Transunion and Experian each have a credit score attached you your credit report. They are responsible for calculating this score “in-house” which simply means they use their own formula to come up with a credit score.
On the other hand your FICO which stands for Fair Isaac Corporation introduced the scoring formula to the credit market. Their primary goal was to help come up with a way to measure the data found in credit reports and attach a “grade” to the information. It also allows businesses to quickly and easily access credit risk.(continued below) The company is the leader in the credit scoring industry and roughly 70% of all lending institutions including mortgage companies, banks and credit card companies rely on the Fair Issac Corporation version to qualify there applicants. This is what makes it important compared to a score that you might get from one of the credit bureaus.
Chances are that a lender that you approach for a loan is using your Fair Issac score to qualify you as opposed to your in-house credit score. Most mortgage lenders stick with this version when making a decision on home approvals.
Equifax, Transunion and Experian each have their version of your credit report and the information contained in each one is different. Each of the bureaus also has a business arrangement with Fair Issac Corporation to provide a version of the scoring model for their services.
For example, your Equifax could be 640, Transunion 675 and Experian 625 when you take a look at each one. When you decide to pull your credit scores online make sure you are receiving your Fair Issac version and not any other, mainly due to the fact that this will be the one that best represents your credit worthiness in the marketplace.
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