While it is mostly used for mortgage applications and auto loans, some personal loan providers also accept FICO Score 8.
1 Two of the most common are the FICO Score 5 and the FICO Score 8. Both are used by lenders to determine a prospective borrower's creditworthiness. But FICO 5 is commonly used in the mortgage lending industry, while FICO 8 is mainly used by credit card issuers.
The newest version (as of this writing) is FICO® Auto Score 10, introduced in 2020. However, many auto lenders still use FICO® Auto Score 2, FICO® Auto Score 4, FICO® Auto Score 5, and FICO® Auto Score 8. Here is a list of which FICO® auto scores are most commonly used by auto lenders for each credit bureau.
What Is the Difference Between FICO 5 and 8 Scores? FICO Score 5 and FICO Score 8 are both common credit scores. Mortgage and auto lenders often use FICO Score 5, while credit card issuers typically use FICO Score 8.
Some auto lenders also use a version of the FICO score called FICO Auto Score. This type of scoring is focused specifically on your ability to pay back debts, and these scores range from 250 to 900.
Apple Card uses FICO Score 9. FICO Score 9 ranges from 300 to 850, with scores above 660 considered favorable for credit approval.
Versions 8 and 9 of FICO scores are similar, but FICO score 9 is generally considered the more forgiving of the two for a few reasons: With FICO 9, third-party collections no longer hurt your credit score once those debts are paid off. FICO 9 treats medical collections differently than other types of debt.
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.
When purchasing a car, most car dealerships run your credit score to determine if you are eligible for a loan. These scores come from a variety of different credit bureaus (TransUnion, Equifax, and Experian) that collect data from creditors.
A score in the high 700s or 800s is considered excellent. About a third of consumers have FICO Scores that fall between 600 and 750—and an additional 48% have a higher score. In 2023, the average FICO® Score☉ in the U.S. was 715. Lenders use their own criteria for deciding whom to lend to and at what rates.
The minimum credit score needed for most mortgages is typically around 620. However, government-backed mortgages like Federal Housing Administration (FHA) loans typically have lower credit requirements than conventional fixed-rate loans and adjustable-rate mortgages (ARMs).
Credit score calculated based on the FICO® Score 8 model and is provided for educational purposes. American Express and other lenders may use a different FICO® Score version than FICO® Score 8, or another type of credit score altogether, and other information to make credit decisions.
Your FICO Score is a credit score. But if your FICO score is different from another of your credit scores, it may be that the score you're viewing was calculated using one of the other scoring models that exist.
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)
Many dealers use a FICO Auto Score instead of a traditional FICO Score or VantageScore when evaluating your car loan application. Your FICO Auto Score can range from 250 to 900, depending on your previous auto loans.
There are also industry specific scores that businesses use. According to FICO, the FICO Bankcard Score 8 is a score version commonly used by credit card issuers when you apply for a new credit card. It's like the base FICO® Score 8 but gives special consideration to how you've managed 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.
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.
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. Auto lenders often use one of the FICO Auto Scores.
Key Takeaways. You will likely need a credit score of at least 670 to qualify for an American Express card, though it may depend on the card and other factors of your application. American Express' MyCredit Guide allows you to check your credit score for free, even if you aren't already a customer.
FICO also has industry-specific scores. These versions are similar to the base scores but designed more specifically for certain types of credit reviews. For example, lenders considering credit card applications may use FICO Bankcard Score 8. And FICO Auto Score 8 may be used for auto loans.
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.