1 year, 8 months ago
via credit-qna.com
What is the difference between a credit score and a FICO score?
I don't understand the difference between a FICO score and a credit score. Are they the same thing? If not how do different factors affect the different scores? Is the score range the same? Why did this second scoring system evolve if they are different?
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M$1 Answer
There are many people who often ask what are the difference between these FICO scoreand credit score.
FICO is acronym for Fair Isaac Corporation a company that created the method that Experian, TransUnion, and Equifax use in calculating a person's performances with his credit. These are credit reporting agencies that get information from creditors and this same information are used to assess about a person's financial background and credibility.
However, these agencies have made some modifications to the criteria they used in grading a person. This is based on the individual's in-house decision on what formula to use and how to total your a person's financial activities and numbers.
So, when you get your report, you will notice that Experian gives you 620, TransUnion 639, and Equifax 655. These are just examples and assumptions so that you will understand better your three scores.
As a result of FICO's role as a leader in the scoring industry, many leading institutions, banks and mortgages use it to make a decision when considering an applicant fro a loan. So it would be best to make sure that your rating by Fair Isaac Corporation is in good books so as to increase your chances when you are planning to get financial aid soon.
FICO is acronym for Fair Isaac Corporation a company that created the method that Experian, TransUnion, and Equifax use in calculating a person's performances with his credit. These are credit reporting agencies that get information from creditors and this same information are used to assess about a person's financial background and credibility.
However, these agencies have made some modifications to the criteria they used in grading a person. This is based on the individual's in-house decision on what formula to use and how to total your a person's financial activities and numbers.
So, when you get your report, you will notice that Experian gives you 620, TransUnion 639, and Equifax 655. These are just examples and assumptions so that you will understand better your three scores.
As a result of FICO's role as a leader in the scoring industry, many leading institutions, banks and mortgages use it to make a decision when considering an applicant fro a loan. So it would be best to make sure that your rating by Fair Isaac Corporation is in good books so as to increase your chances when you are planning to get financial aid soon.
images:
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
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