Your Credit – True FICO Scores VS. Other Credit Scores

Around 90% of the creditors all over the world use credit scores from a single source. That company is the Fair Isaac Corporation or better known as FICO.

It’s a good idea for you to get your credit scores from the FICO website, because your FICO scores are the ones that most banks will use to base their acceptance of your credit application. You need to get an accurate snapshot of what is going on with your credit and what is causing it to be as it is.

There are scams out there, so be watchful and steer clear of these. There are also many websites which will have conflicting information and of course all of the credit bureaus will also have their own credit scores for consumers. There are various systems for determining credit scores and many websites which will offer you the opportunity to get your credit report; but you want to be sure that they will also provide you with your FICO scores from all three of the major credit bureaus. You can purchase just one score or all three at myFICO.com. While you will have to pay by the score, this is the best way to find out exactly where your credit score stands.

All three major credit bureaus have their own methods of calculating credit scores.

Experian and their affiliates (for example FreeCreditReport.com) calculate scores with version 2 of the FICO system or the PLUS system. Equifax uses FICO as well as BEACON scores, TransUnion, however gives you a credit score which is the same or close to your FICO score, since they use the classic FICO scoring system. Your score from TransUnion will be very close to your score from FICO, if not identical.

AnnualCreditReport.com uses the VantageScore system, which differs from the FICO and PLUS systems. However, the PLUS score should be fairly accurate; within 100 points or so. The difference is due to the slightly different formulas. VantageScore ranges from 501-990, rather than the FICO or PLUS scale, which ranges between 300-850.

And so there it is. Now you know some of the credit bureau secrets. You should always try to continue to keep yourself educated about your credit score and about the credit system.

Related posts:

1. Raising Your FICO Scores Fast!
2. Credit Scores: What Factors Affect Your FICO Score?
3. Fast Tips For Increased Credit Scores
4. Learn How To Repair Your Credit Scores
5. Home Buddies – Delete Judgments and Improve Your Credit Score