It's also worth mentioning that lenders widely use the FICO 9 credit score in the U.S., but it's not the only option available. Some lenders may use other credit scoring models, such as VantageScore, a joint venture between the three major credit bureaus (Equifax, Experian, and TransUnion).
FICO scores 8 and 9 are commonly used for student loans, personal loans, medical loans, credit card lines and auto loans. However, there are industry-specific FICO versions for certain types of debt as well, including auto loans and credit cards.
Though the FICO® Score 9 is an updated version of FICO® Score 8, the FICO® Score 8 is still the most widely used base score by lenders, meaning that, while you may have a better credit score from the FICO® Score 9 model, lenders are more likely to still use the previous version.
For other types of credit, such as personal loans, student loans and retail credit, you'll likely want to know your FICO® Score 8, which is the score most widely used by lenders.
FICO® and VantageScore® are the two most popular credit scoring models today. FICO and VantageScore credit scores are equally reliable and accurate, based on the specific scoring model that's being used. Tools are available that allow you to check and monitor your credit score for free, with no impact to your credit.
FICO 9 is an updated FICO credit scoring model that was introduced to lenders in 2014 and consumers in 2016. Key changes in FICO 9 center on how collection accounts, paid and unpaid, factor into your credit score calculations.
While FICO 8 is the most widely used, newer versions of the score are available. For example, many lenders have upgraded to FICO 9. Unlike older versions, FICO 9 ignores paid third-party collections, places less weight on unpaid medical collections and factors in rental history when reported.
Leveraging FICO's state-of-the-art analytic capabilities and predictive technologies and TransUnion's rich repository of consumer credit information, the FICO Score 9 provides a more accurate assessment of a consumer's future risk of severe delinquency.
FICO® Score 9 from Experian®
Simple access via Wells Fargo Online, to help you know where you stand.
Your FICO score is a representation of your credit worthiness. FICO offers specific products and solutions for car dealers and auto loans. Their product is called Auto Score 8. As you can see here from FICO's promotional materials, Auto Score 8 is meant to help dealers, “Improve accuracy and speed of decision making.
While several credit scoring models exist, 90% of top lenders use FICO® Credit Scores, including Discover.
FICO® Score 8 is one of the most widely used FICO® Credit Scores and there's a good chance that your lender may use it too. For example, if you're trying to get a new credit card, personal loan, student loan, or retail credit, your FICO® Score 8 may be important.
The credit score used in mortgage applications
While the FICO® 8 model is the most widely used scoring model for general lending decisions, banks use the following FICO scores when you apply for a mortgage: FICO® Score 2 (Experian) FICO® Score 5 (Equifax) FICO® Score 4 (TransUnion)
Why is my FICO Score Lower than TransUnion? TransUnion has a unique way of scoring your credit, which means your TransUnion score may end up being more than your FICO score. Also, there may be errors or mistakes that TransUnion should account for. If you see any errors, you need to address them.
FICO® Score 2 is the "classic" FICO® Score version available from Experian. FICO® Score 4 is the version of the classic FICO® Score offered by TransUnion. FICO® Score 5 is the Equifax version of the "classic" FICO® Score.
Credit reports and other FICO Score versions will be updated based on the type of subscription you have – monthly for FICO® Basic or FICO® Premier and quarterly for FICO® Advanced. They will also be updated if you purchase additional credit reports that aren't a part of your subscription.
And when it comes to credit, 850 is the highest the FICO® Score☉ scale goes. For more and more U.S. consumers, practice is making perfect. According to recent Experian data, 1.54% of consumers have a "perfect" FICO® Score of 850. That's up from 1.31% two years earlier.
What is the highest credit score possible? To start off: No, it's not possible to have a 900 credit score in the United States. In some countries that use other models, like Canada, people could have a score of 900. The current scoring models in the U.S. have a maximum of 850.
A couple people from my last post wanted to know if there was a difference between the scores given by Credit Karmas scores and Wells-Fargo's scores. Credit Karma gave me 750 for their Equifax score and 742 for their TransUnion Score. Wells-Fargo gave me a 754 with their FICO Score 9 system.
The Takeaway. Your credit score doesn't start at zero, and the lowest score you can have is 300. But most people's credit scores start out around 500 or higher, and the average score for all adults is 715.
Credit Karma's credit scores are VantageScores, a competitor to the more widely used FICO scores. Those scores are based on the information in your credit reports from Equifax and TransUnion, two of the three major credit bureaus. Your Credit Karma score should be relatively close to your FICO score.