Which is of more importance... Credit score or FICO score?

Joined: 26 Feb 2008 Posts: 4285 127 Magic Points

This is true. I just actually wonder which score is more impartant the FICO or credit. And why do we need so many scores anyway. Just like now there is one m ore credit reporting agency. Innovois...why do we need one more to complicate matters. They can not be that beg of an outfit if the federal giverment is not making them hand out a free report. Not onlly that when you hear people taliking about reports it is a name not mentioned.

Joined: 24 Jul 2008 Posts: 8 275 Magic Points

I thought FICO score and credit score are the same.. Confused

Joined: 31 Jul 2006 Posts: 516 13571 Magic Points

Hi mirage
FICO score is a type of credit score which is used by most of the creditors to judge your creditworthiness. It is a credit scoring model prepared by Fair Issac corporation. However, there is another type of credit score know as Vantage Score which is being prepared by the three credit bureaus to overcome difference in the credit score which is now found among the FICO score of the three bureaus. Both FICO score and Vantage score are different credit scoring models.

Joined: 26 Feb 2008 Posts: 4285 127 Magic Points

Wht are there so many different scoring methods?

Joined: 03 Nov 2007 Posts: 3927 10 Magic Points

It depends on you are looking at it or how the credit reporting agency calculates the score.

Joined: 06 Jul 2006 Posts: 686 17396 Magic Points

I agree with Anthony. However, the creditors mostly determine the creditworthiness of the borrower depending upon the FICO score. Since the FICO score sometimes varies among the credit bureaus, borrowers often use middle credit score and average credit score to determine the borrowers creditworthiness. Average credit score is mostly used by sub prime lenders who lend money to people with very low credit score.

Joined: 17 Dec 2008 Posts: 3 121 Magic Points

i say both you need both for almost every thing

Joined: 13 Aug 2007 Posts: 1889 1356 Magic Points

From what I understand, a FICO score is like an 'average' of your credit score. However....to be honest, I'm still a bit 'fuzzy' on the difference.

Joined: 27 Jun 2006 Posts: 1307 29555 Magic Points

Credit score is a general concept of measuring your creditworthiness by taking into account different factors in your credit report. The concept was developed by Fair Issac Corporation and so it is also known as FICO score. Lately another scoring model has been developed by the three credit reporting agencies of US, known as vantage score. In vantage score, the score ranges from 501 to 990 and does not use the concept of authorized user thereby reducing the risk of the borrowers.

Joined: 13 Aug 2007 Posts: 1889 1356 Magic Points

Vantage Score??!!......who, in the world, can keep up with all the way that they determine your 'worthyness'. Does a Vantage Score actually come up on a CR that the lender may get for you? You said, CAROL, that the Vantage Score can actually HELP someone who has bad credit? Can you explain, a bit more, how they (CB's) determine what you VS may be? What are the 'factors', etc?

Joined: 14 Feb 2009 Posts: 9 344 Magic Points

FICO SCORE is the score that is mostly used by the creditors to help them decide whether to grant the loan application. FICO SCORE is the score that is being calculated whatever is in their credit report, giving the lenders the chance to review what is their payment behavior,how they pay certain debts. As a matter of fact, fico score is widely used and you can only obtain it through one of the major credit reporting agency.

Joined: 17 Feb 2009 Posts: 102 510 Magic Points

both are important but there is no choice for both are important mentioned over here so i have selected one of them.

Joined: 27 Jun 2006 Posts: 1307 29555 Magic Points

There are two different types of credit scores. They're the FICO score and the Vantage score. FICO score has so long been used by the lenders to judge the creditworthiness of the borrowers. Now, since the score vary across the three bureaus, the bureaus have developed Vantage score which is still not in use. However, recently, I found that Experian has decided to discontinue offering FICO score to borrowers, but it will continue to offer FICO score to the lenders. Debtors can only get FICO scores from the other two bureaus - TransUnion and Equifax.

Joined: 30 Mar 2009 Posts: 35 545 Magic Points

The credit Score is more important for get improvement in Education & home.

Previous 1, 2, 3
Page 3 of 3