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Please serve as my guinea pig on this. I'm working on a newcomers' guide, and this is one of the topics. Any feedback from any and all is truly welcomed:
@Anonymous wrote:
-To Haulingthescoreup
What are the difference between the FAKO and FICO scores?
Thanks
@haulingthescoreup wrote:
Please serve as my guinea pig on this. I'm working on a newcomers' guide, and this is one of the topics. Any feedback from any and all is truly welcomed:
Why do I have 8 different credit scores? –FICO’s vs FAKO’s
One of the most common questions posted here by newcomers goes something like this: “I thought that I bought my credit scores, but I have 3 from EX, 3 from TU, and 2 from EQ. Which one is right?” The answer is, it depends.
FICO scores are produced by scoring formulas created by FairIsaac Corporation, named for the engineer and mathematician who developed scores to measure credit risk. Almost all lenders use FICO scores in combination with their own internal lending models to make their credit decisions. Each CRA commissions its own scoring formula, which varies slightly from those of the other two CRA’s, so you have three different FICO scores, one from EQ, one from TU, and one from EX. Even with identical credit reports (which are rare), these scores will vary from one another. The scoring formulas are periodically updated, and there is often an overlap between some lenders using an older formula and some using a newer version.
There are other non-FICO credit scores, which are often sold directly by the CRA’s or along with non-FICO secondary reports. These are not derived from the FICO scoring formulas, and so they don’t really mean anything if you’re trying to see how your FICO scores are doing. For this reason, they are often called FAKO’s. More importantly, they are generally not used by lenders, so they aren’t terribly useful to anyone at all. They generally have a different score range than FICO’s, so it isn’t very helpful to you if they’re higher or lower than the real things. In addition, they often come with advice that doesn’t necessarily help your FICO scores, and may in fact hurt them. If you subscribe to a credit-monitoring service other than myFICO, and it has “credit scores”, learn to tune them out –they’re FAKO’s.
Where can you get FICO scores?
• You can buy all three here on the myFICO site. Credit Complete (all three scores) and Credit Standard (just one score) only display for 30 days, so be sure to print them out. Scores bought through the Suze Orman package display for a year. EQ scores acquired through Scorewatch display for a year. None keep updating on their own; you have to pay for fresh scores. Be sure to Google for discount codes.
• You can buy your EQ FICO score directly from Equifax’s site: www.equifax.com .
• You can buy your TU FICO score directly from www.transunioncs.com . Note the extra “cs” in the URL.
Make very sure, when buying your score from a nonFICO source, that it displays the term “FICO.” Otherwise, you’re wasting your money.
There are also specialized FICO scores that are tweaked for certain industries, such as the bankcard and auto versions. WaMu (Washington Mutual) offers a credit-card enhanced score with some of their credit cards These scores are a month old, and differ from the classic scores that you get here, but they are a form of FICO score.
Andrew_Garcia_4918 wrote:
-Okay thanks for that info. The credit monitoring service that I have is TRUECREDIT. Are they displaying the FICO's or FAKO's? And am I wastin my money?
It's almost poetic, Hauling!
haulingthescoreup wrote:Please serve as my guinea pig on this. I'm working on a newcomers' guide, and this is one of the topics. Any feedback from any and all is truly welcomed:
Why do I have 8 different credit scores? –FICO’s vs FAKO’s
One of the most common questions posted here by newcomers goes something like this: “I thought that I bought my credit scores, but I have 3 from EX, 3 from TU, and 2 from EQ. Which one is right?” The answer is, it depends.
FICO scores are produced by scoring formulas created by FairIsaac Corporation, named for the engineer and mathematician who developed scores to measure credit risk. Almost all lenders use FICO scores in combination with their own internal lending models to make their credit decisions. Each CRA commissions its own scoring formula, which varies slightly from those of the other two CRA’s, so you have three different FICO scores, one from EQ, one from TU, and one from EX. Even with identical credit reports (which are rare), these scores will vary from one another. The scoring formulas are periodically updated, and there is often an overlap between some lenders using an older formula and some using a newer version.
There are other non-FICO credit scores, which are often sold directly by the CRA’s or along with non-FICO secondary reports. These are not derived from the FICO scoring formulas, and so they don’t really mean anything if you’re trying to see how your FICO scores are doing. For this reason, they are often called FAKO’s. More importantly, they are generally not used by lenders, so they aren’t terribly useful to anyone at all. They generally have a different score range than FICO’s, so it isn’t very helpful to you if they’re higher or lower than the real things. In addition, they often come with advice that doesn’t necessarily help your FICO scores, and may in fact hurt them. If you subscribe to a credit-monitoring service other than myFICO, and it has “credit scores”, learn to tune them out –they’re FAKO’s.
Where can you get FICO scores?
• You can buy all three here on the myFICO site. Credit Complete (all three scores) and Credit Standard (just one score) only display for 30 days, so be sure to print them out. Scores bought through the Suze Orman package display for a year. EQ scores acquired through Scorewatch display for a year. None keep updating on their own; you have to pay for fresh scores. Be sure to Google for discount codes.
• You can buy your EQ FICO score directly from Equifax’s site: www.equifax.com .
• You can buy your TU FICO score directly from www.transunioncs.com . Note the extra “cs” in the URL.
Make very sure, when buying your score from a nonFICO source, that it displays the term “FICO.” Otherwise, you’re wasting your money.
There are also specialized FICO scores that are tweaked for certain industries, such as the bankcard and auto versions. WaMu (Washington Mutual) offers a credit-card enhanced score with some of their credit cards These scores are a month old, and differ from the classic scores that you get here, but they are a form of FICO score.
@llecs wrote:
It's almost poetic, Hauling!
@Anonymous wrote:FAKO's -Not wasting you money to monitor your reports-Just ignore the scores and advice.