FICO scores are generally known to be the most widely used by lenders. But the credit-scoring model used may vary by lender. While FICO Score 8 is the most common, mortgage lenders might use FICO Score 2, 4 or 5.
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)
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.
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.
Unlike your traditional FICO score, car dealers — more accurately lending institutions that sell auto loans to dealerships — refer to another, less known score, called The FICO® 8 Auto Score, or its competitor CreditVision.
As an example, FICO Score 5 at Equifax is the FICO Score version previous to FICO Score 8 at Equifax. Other FICO® Score versions, including industry-specific auto and bankcard versions, are also included in the FICO Score products on myFICO.com so you can see what most lenders see when looking at your scores.
FICO 10 and 10T scores can be used by lenders to assess credit risk when a person applies for credit cards, car loans, personal loans, and mortgages.
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.
VantageScore vs.
FICO scores are the most widely used scores used by lenders to determine the creditworthiness of consumers. This means more institutions use FICO over any other scoring model to decide if someone should get a loan, mortgage, or any other credit product.
FICO® Score 9 from Experian®
Simple access via Wells Fargo Online, to help you know where you stand.
A 700 credit score is considered “very good” and opens doors to the best mortgage options available. Conventional loans offer highly competitive rates and terms at this credit level. Government-backed loans like FHA are available but may be less advantageous compared to conventional options.
You can get a FICO® Score 8 from Experian for free, and your account will tell you the factors that are helping and hurting your scores the most. You can also track your score over time for free—and get free access to your Experian credit report with monthly updates.
Credit scores from the three main bureaus (Experian, Equifax, and TransUnion) are considered accurate. The accuracy of the scores depends on the accuracy of the information provided to them by lenders and creditors. You can check your credit report to ensure the information is accurate.
These can include loans, credit cards, mortgages, overdrafts or car finance. The credit reference agencies Halifax use include TransUnion, Experian and Equifax.
While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.
The average FICO credit score in the US is 717, according to the latest FICO data. The average VantageScore is 701 as of January 2024.
FICO 8 is still the most widely used credit score today. If you apply for a credit card or personal loan, odds are that the lender will check your FICO 8 score. FICO 8 is unique in its treatment of factors such as credit utilization, late payments, and small-balance collection accounts.
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).
While opening a new credit card or other line of credit may temporarily decrease your score, it can also improve your utilization and credit mix in the long run. Be sure to regularly check your credit reports for accuracy and approach new credit carefully with a plan for repayment.
An Equifax credit score isn't used by lenders or creditors to assess a consumers' creditworthiness. Instead, many lenders use FICO Scores® to help determine a potential borrower's creditworthiness. FICO uses credit scores from the three reporting agencies, including Equifax and Transunion, to determine their score.
FICO® Auto Score 8 is a FICO® Score version that is fine-tuned for auto lending. Many banks, auto dealers and other lenders use this version for auto financing evaluation. FICO® Auto Score 8 ranges from 250 to 900 – higher scores are better.
While VantageScore and FICO now use the same 300-850 range, VantageScore tiers run about 50 points lower than FICO tiers.