Basically, "credit score" and "FICO® score" are all referring to the same thing. A FICO® score is a type of credit scoring model. While different reporting agencies may weigh factors slightly differently, they are all essentially measuring the same thing.
Your score differs based on the information provided to each bureau, explained more next. Information provided to the credit bureaus: The credit bureaus may not receive all of the same information about your credit accounts. Surprisingly, lenders aren't required to report to all or any of the three bureaus.
For the majority of general lending decisions, such as personal loans and credit cards, lenders use your FICO Score. Your FICO Score is calculated by the data analytics company Fair Isaac Corporation, and it's based on data from your credit reports. VantageScore, another scoring model, is a well-known alternative.
The most accurate credit scores are the latest versions of the FICO Score and VantageScore credit-scoring models: FICO Score 8 and VantageScore 3.0.
Some lenders report to all three major credit bureaus, but others report to only one or two. Because of this difference in reporting, each of the three credit bureaus may have slightly different credit report information for you and you may see different scores as a result.
Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.
You can get your FICO® Score for free from hundreds of financial services companies, including banks, credit unions, credit card issuers and credit counselors that participate in the FICO® Score Open Access program and offer free scores to customers.
Consequently, when lenders check your FICO credit score, whether based on credit report data from Equifax, Experian, or TransUnion, they will likely use the FICO 8 scoring model. FICO 8 scores range between 300 and 850. A FICO score of at least 700 is considered a good score.
They are Experian, Equifax and CIBIL. CIBIL is quite popular as it has been in the business for a long time. Non-Banking Financial Companies and banks use the credit score provided by CIBIL, Experian and Equifax to determine the potential risk of lending to a customer.
Remember, the VantageScore® model incorporates many of the same factors that are used when calculating your FICO® scores, although it may assign a different weight to certain factors. Credit Karma shows you the different credit factors that can affect your scores and where you can work to try to improve your credit.
It's recommended you have a credit score of 620 or higher when you apply for a conventional loan. If your score is below 620, lenders either won't be able to approve your loan or may be required to offer you a higher interest rate, which can result in higher monthly payments.
What Credit Score Do Lenders Use? The two main companies that produce and maintain credit scoring models are FICO® and VantageScore. Lenders most commonly use the FICO® Score to make lending decisions, and in particular, the FICO® Score 8 is the most popular version for general use.
FICO 8 is still the most widely used FICO credit score today. If you apply for a credit card or personal loan, odds are that the lender will check your FICO 8 scores from one or more of the major credit bureaus.
The average FICO® Score☉ in the U.S. rose to 714 in 2021, according to Experian data from September 2021. It's the fourth consecutive year of an increase, up from the average FICO® Score of 710 in September 2020.
FICO Scores are an industry standard
90% of top lenders use FICO Scores when making lending decisions. So when you apply for a loan, it's likely your lender will be checking your FICO Scores to determine how much you can borrow and how much interest you'll pay.
In short, FICO is more transparent than the three credit bureaus and, most times, the least costly for all parties involved. However, reports from the three credit bureaus are vital to monitor your progress on your journey to that ideal credit score so that you can get the best loan rates and credit cards.
For both the VantageScore and base FICO® score models, the lowest score is 300 and the highest credit score is 850. But even if you have pretty good credit habits, don't be surprised if you check your scores and find that you're below 850.
The credit scores and reports you see on Credit Karma should accurately reflect your credit information as reported by those bureaus. This means a couple of things: The scores we provide are actual credit scores pulled from two of the major consumer credit bureaus, not just estimates of your credit rating.
FICO Auto Score has several versions. Most auto lenders use FICO Auto Score 8, as the most widespread, or FICO Auto Score 9. It's the most recent and used by all three bureaus. FICO Auto Score ranges from 250 to 900, meaning your FICO score will differ from your FICO Auto Score.
Order a free annual credit report.
According to the Federal Trade Commission (FTC), you can order your report by visiting AnnualCreditReport.com, calling 1-877-322-8228, or sending an Annual Credit Report Request Form to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.
FICO just provides a numerical credit score, based on an individual's payment habits and the amount of debt they carry. Credit bureaus Experian and Equifax both provide scores, too, but they also provide detailed credit histories on individuals.
But, despite that, you'd be surprised how many borrowers are shocked that their Credit Karma score is lower than the FICO scores their lender uses. Read on to find out why. And most importantly, what you need to know about credit scores when applying for a mortgage.
As mentioned above, a 680 credit score is high enough to qualify for most major home loan programs.