Whats the difference between your fico score and credit score

A credit score is a three-digit number that lenders use to determine whether you’ll get approved for financial products like credit cards and loans.

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6 reasons why your credit score differs
Which credit score matters the most?
Difference Between FICO Score And Credit Score
Comparative Table
What Is FICO Score?
What Is Credit Score?
FICO Score vs Credit Score Infographics
Similarities
Recommended Articles
Are FICO scores higher than credit scores?
Why are my credit and FICO scores different?
Is FICO the most accurate credit score?

Credit scores typically range from 300 to 850, but there are dozens of versions — from base scores to industry-specific scores — that make it tricky to know which one you're being evaluated on during the application process.

You may check your score with your credit card company or on a personal finance site only to find it differs on another, making it hard to know what credit score range you fall in and which products you have the best chance of qualifying for. And when a lender pulls your credit score, they may request it from a different credit bureau — Experian, Equifax or TransUnion — and/or request a specific version that varies from the one you checked.

Most credit scores weigh the same factors, such as payment history, utilization rate, length of credit history, number of new inquiries and variety of credit products. However, there may be score differences for a variety of reasons, which CNBC Select breaks down below.

6 reasons why your credit score differs

Credit scoring model used: There are several models out there for scoring your credit history. But typically, lenders use one of the two main credit scoring models — FICO or VantageScore. Both companies evaluate the same main factors of your credit history like payment history and utilization rate, but use their own formulas to weigh each factor.
Score version: There are dozens of credit score versions that are broken up into base scores and industry-specific scores. Base scores, such as FICO® Score 8 or VantageScore 3.0, show lenders the likelihood you’ll repay any credit obligation. Industry-specific scores represent the odds you’ll repay a specific loan, such as the FICO® Auto Score 9 used in auto loan decisions.
Credit bureau: Credit scores are calculated using data listed on your credit report, which comes from one of the three major credit bureaus — Experian, Equifax or TransUnion. 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. While most do, there's no guarantee that the information will be the same across the board, creating potential differences in your scores.
Date scores are accessed: If you view your credit score at different times, there may be discrepancies since one score may be outdated.
Errors on your credit report: Your credit score can reflect any errors that appear on your credit report. If errors only appear on one bureau's report, then your credit score from that report may differ from another that has no errors. You should dispute errors on your credit report right away to avoid harm to your credit score.

Which credit score matters the most?

While there's no exact answer to which credit score matters most, lenders have a clear favorite: FICO® Scores are used in over 90% of lending decisions.

While that can help you narrow down which credit score to check, you'll still have to consider the reason why you're checking your credit score. If you're accessing your credit score simply to track your finances, a widely-used base score like FICO® Score 8 works. This version is also helpful for gauging which credit cards you qualify for.

If you plan to make a specific purchase, you may want to review an industry-specific credit score.FICO lists the specific scores that are used for various financial products. FICO® Auto Scores are ideal if you want to finance a car with an auto loan, while it's good to check FICO® Scores 2, 5 and 4 if you plan to buy a house.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.

Difference Between FICO Score And Credit Score

The basic difference between the terms FICO Score vs credit score is their nature. A credit score is a general term for assessing the credit worthiness of a borrower by lenders and credit bureaus. FICO is a brand name for the credit scoring model. Credit bureaus use it for a borrower’s credit rating. On the other hand, a credit score is a parameter of the creditworthiness of an individual, which banks, companies, lenders, and borrowers calculate using a credit rating tool like FICO. Hence, FICO comes after the lenders request creditworthiness for borrowers.

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Fico score vs credit score number helps determine an individual’s creditworthiness. Credit bureaus use FICO-like credit scoring models to judge the credit worthiness of a borrower.
A credit score is a generic term for knowing the creditworthiness of an individual.
FICO is a specialized credit scoring model owned by Fair Isaac Corporation that aids in preparing the credit scores of borrowers.
In the United States of America, while analyzing with the same production techniques; the scoring model of FICO score 8 most commonly.

Comparative Table

Here is a comparison table that depicts the differences between FICO score vs credit score:

Category	FICO Score	Credit Score
Basic Difference	It is a company conducting credit scores.	It is a generic term for calculating a borrower’s creditworthiness by various companies using different parameters and softwares. An example includes the FICO company.
Model Of Scoring	The model of scoring is between 300 to 850	It depends on the scoring model which the company is using at its disposal.
Adoption By Industry	It is used by most lenders while going through the borrower’s application.	It is a generic form of scoring which does not form the industry standards of credit rating but uses an industry-approved credit scoring model to gauge the credit risk and credit worthiness of bowers.
Excellent Score Level	The ideal range for an excellent score is between 720 to 850.	The ideal range of excellent scores varies from company to company based on their credit rating software. It differs by upto 100 points.
Time For Report Generation	The company needs at least six months of data to prepare the report.	It depends on the score generation company, with a minimum of one month.
Calculation Of Score	It is calculated using different parameters – payment record (35%), balance loan amount (30%), credit age (15%), loan mix (10%), and recent loan applications (10%)	The different parameters and their respective weightage differ from credit scoring companies.

What Is FICO Score?

FICO is the short form of Fair Isaac Corporation that prepares credit rating models. It is a United States company-owned brand and proprietary credit scoring model that assesses the creditworthiness of any aspiring or existing borrower applying for a loan from a financial institution. It is a three-digit number like any other credit score that assesses the risk in lending money. Credit agencies compile this score from the borrower’s credit reports and credit history.

FICO scoring model is based on five different parameters – payment record (35%), balance loan amount (30%), credit age (15%), loan mix (10%), and recent loan applications (10%). Almost 90% of all the major lending institutions utilize the scoring before approving a loan.

FICO gives a varied output of scores depending upon the type of score the lender check and the type of credit bureaus use. Moreover, the higher FICO scores depict the exception creditworthiness, and the lower score depicts the worst credit record of a borrower. As a result, a higher FICO score enables an individual or business to get faster loan approvals by lenders and vice versa.

The most generally used FICO® Score versions, along with their uses, are the following:

Most commonly used is FICO score 8.
For credit card approval, FICO Bankcard Scores 2, 4, 5, and 8 plus FICO score 3 are used.
FICO Auto Scores 2, 4, 5, and 8 are used for auto loans.
FICO scores 2, 4, and 5 are used for mortgage lending.

What Is Credit Score?

A credit score is a numerical depiction of a borrower’s ability to handle and repay the loan per the loan schedule without default. Usually, a borrower’s credit score is represented in three digits starting from 300 to 850 as per the punctuality of loan repayment by the borrower to assess the credit risk and creditworthiness.

If the borrower is paying their loan on time, their creditworthiness will be high in the bracket of 740-850. However, if borrowers default in their credit history, their score will be less than 300-669. The borrower, the lenders, or financial institutions can generate a credit score by visiting credit bureaus’ websites like Equifax, Experian, and Transunion.

A good credit score is necessary for obtaining a hassle-free loan from any financial institution. The lender may use a variety of credit scores depending on the needs of the loan. For example, if a borrower applies for a housing loan, the lender may use the credit history of the housing loan. Moreover, the credit score may differ based on the use of the different scoring models, credit bureaus, or the loan criteria in practice by the lender.

FICO Score vs Credit Score Infographics

Similarities

Here are some prime similarities between FICO and Credit Score:

Both the terms are interchangeable when talking about credit scores.
Second, the FICO score vs credit score checks on an individual’s creditworthiness for borrowing.
Third, an individual has to go through the creditworthiness test before applying for a loan that involves FICO as one of the credit scoring models by the credit bureaus.

Therefore, the FICO scoring model is integral to individuals’ credit scores.

Are FICO scores higher than credit scores?

Today, more than 90% of top lenders use FICO Scores to make faster, fairer, and more accurate lending decisions. ... FICO Scores vs. other scores: Compare for yourself..

Why are my credit and FICO scores different?

Lenders report credit information to the credit bureaus at different times, often resulting in one agency having more up-to-date information than another. The credit bureaus may record, display or store the same information in different ways.

Is FICO the most accurate credit score?

Although Experian is the largest credit bureau in the U.S., TransUnion and Equifax are widely considered to be just as accurate and important. When it comes to credit scores, however, there is a clear winner: FICO® Score is used in 90% of lending decisions.