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popi1231
Posts: 1
Registered: ‎03-22-2011

Is the FICO score same as Credit Bureau(s) Score?

Hello All,

 

Was looking on-line at the monitoring services offered by the different credit bureaus.  Are the "scores" supplied by the credit bureau their proprietary "scores" or the actual FICO Scores?  I read in one of the bureau's websites that the score they offer is different-than/not-the-actual FICO score.  Is the "real" FICO score a FICO score based on info. from all 3 bureaus, or is there a "real" FICO score for each bureau?

Frequent Contributor
JagerBombs89
Posts: 401
Registered: ‎09-13-2009

Re: Is the FICO score same as Credit Bureau(s) Score?

[ Edited ]

 


popi1231 wrote:

Hello All,

 

Was looking on-line at the monitoring services offered by the different credit bureaus.  Are the "scores" supplied by the credit bureau their proprietary "scores" or the actual FICO Scores?  I read in one of the bureau's websites that the score they offer is different-than/not-the-actual FICO score.  Is the "real" FICO score a FICO score based on info. from all 3 bureaus, or is there a "real" FICO score for each bureau?


If the score does not say "FICO" then it is the credit bureau's own flavor of scoring (FAKO Score).  From what it appears, MyFICO is the only place that will give you a TU or EQ "FICO" Score.  Equifax does provide a FICO Score but they have hidden it so well that you would probably end up purchasing a FAKO instead!

 

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MarineVietVet
Posts: 14,084
Registered: ‎07-14-2009

Re: Is the FICO score same as Credit Bureau(s) Score?


JagerBombs89 wrote:

 


If the score does not say "FICO" then it is the credit bureau's own flavor of scoring (FAKO Score).  From what it appears, MyFICO is the only place that will not give you a TU or EQ "FICO" Score.  Equifax does provide a FICO Score but they have hidden it so well that you would probably end up purchasing a FAKO instead!

 


Hi Jager,

 

Didn't you mean to write "myFICO is the only place that will give you a TU or EQ "FICO" score? (Besides a lender of course)

 

Plus I will add that there is no 3 in 1 monitoring service at this time that sells FICO scores so that's one thing for everyone to keep in mind.

 

 

 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Frequent Contributor
JagerBombs89
Posts: 401
Registered: ‎09-13-2009

Re: Is the FICO score same as Credit Bureau(s) Score?

 


Marinevietvet wrote:

JagerBombs89 wrote:

 


If the score does not say "FICO" then it is the credit bureau's own flavor of scoring (FAKO Score).  From what it appears, MyFICO is the only place that will not give you a TU or EQ "FICO" Score.  Equifax does provide a FICO Score but they have hidden it so well that you would probably end up purchasing a FAKO instead!

 


Hi Jager,

 

Didn't you mean to write "myFICO is the only place that will give you a TU or EQ "FICO" score? (Besides a lender of course)

 

Plus I will add that there is no 3 in 1 monitoring service at this time that sells FICO scores so that's one thing for everyone to keep in mind.

 


WHOOPS, That's exactly what I meant!  Looks like I need to start proof-reading my posts when I am online at 2am :smileyvery-happy: 

 

Mega Contributor
RobertEG
Posts: 17,456
Registered: ‎03-19-2007

Re: Is the FICO score same as Credit Bureau(s) Score?

What confuses many consumers is the use of CRA names associated with credit scores.  All credit scores, regardless of vendors, must be generated through a CRA, as only the CRAs have the data necessary to produce scoring.  Thus, you have  EXP, EQ, and TU scores.  But that is where the commonality ends.

 

Take, for example, true FICO scores.  Fair Isaac does not produce credit scores.  They cant, simply because the dont have the data.  They provide the means to produce FICO scores.  FI has the algorithms, and the CRAs have the data.  The way it works is that Fair Isaac provides, under a licensing agreement with each CRA, encrypted algorithms that the CRA uses to produce true FICO scores.  For each score they produce using the FI algorithms, they charge a fee to the purchaser of the scors, and then pay a fee back to FI, and keep the difference as their profit.  Then comes the issue of who the CRA decides to sell the licensed FICO scores to.  Creditors enter into agreements with the CRAs to purchase FICO scores.  Until recently, Fair Isaac had an agreement with each CRA to purchase back the FICO scores produced by the CRAs. FI would then, under their myFICO consumer site, sell them to the consumer.  About two years ago, EX terminated this "sell back" of FICO scores to FI.  Thus, FI could no longer provide EX-generated FICO scores on their myFICO site.

 

Each CRA, in addition to licensing the use of the FICO algorithms from FI, has also independently produced their own competitive scoring algorithms.  When they sell scores using their own algorithms, they don have to pay a fee back to FI.  So they try to pawn them off.  They are true credit scores, they are just not true FICO-based scores.  Since a vast majority of creditors use only FICO scores in their evaluations, any non-FICO score you get, regardless of whether it is better or worse than a true FICO score, is not usually something that creditors will use.  These so-called "FAKO" scores are touted as having benefit because they permit the consumer to still see how changes in their credit files and credit report generally affect credit scoring.  So, from an educational benefit, they do have value.  However, the real value of any credit score is in its usefulness in obtaining credit.  On that grounds, FAKO scores pale to insignifcance when compared with true FICO scores.   There is no way to translate any FAKO score to an equivalent FICO score.

 

Know what you are paying for, and its value and usefulness for your intended purpose.  If you just want to track scoring for general educational purposes, a FAKO may suit your needs.  However, be aware that when you apply for credit, the FAKO score probabably wont be used by your prospective creditor.

 

Established Contributor
veracious
Posts: 684
Registered: ‎04-21-2010

Re: Is the FICO score same as Credit Bureau(s) Score?

@ RobertEG.

 

Would a credit card issuer purchase a FI algorithm independently ,  then purchase a credit report from the bureaus

and then run the algorithm on the report they just purchased? 

 

Or would they most likely purchase the credit report and score from the credit bureau?

 

The reason I ask is because I was curious if  FI  knew which credit issuer  uses which particular one of their FI  products

to make lending decisions.

l

Thanks

 

_________________________________________________
"You may never know what results come of your actions,
but if you do nothing, there will be no result" ~ Mahatma Gandhi
Mega Contributor
RobertEG
Posts: 17,456
Registered: ‎03-19-2007

Re: Is the FICO score same as Credit Bureau(s) Score?

I dont know for a fact that FI does not license its scoring algorithms to private parties, but hightly doublt it.

Their algorithms are licensed in encrypted form to prevent access to the properietary trade secret workings therein.

I would suspect that they are very careful in who they license them to.  And I would also expect that the licensing fee is failry substantial.

Plus, only the CRAs have the full credit file data on consumers.  If a CC pulled a CR on you, and attempted to run it through a licensed FICO algorithm, even if they were able to secure a license from FI it, a credit report does not include all data in one's credit file, and thus would not be a complete scoring.

Additionallly, information in your credit file is coded under a specific format called Metro 2.  Its just a long, long string of characters.  Credit reports are not.  I am fairly confident that the FICO algorithm would require full Metro 2 coding to work, and a CR alone would not provide that.

Just speculating, but I find such a scenario highly unlikely.

Established Contributor
veracious
Posts: 684
Registered: ‎04-21-2010

Re: Is the FICO score same as Credit Bureau(s) Score?

[ Edited ]

Thanks for your explanation, RobertEG.

 

If you don't mind, would you explain for us what data is not included in our credit files that we don't get to see?

Whatever  it may be is a part of our score(?), but we don't  see this data when we or a lender pulls our file? 

That seems unusual. 

 

Thanks

 


 

ETA:   Found this statement in an article about credit files.  "    Some information is kept at the credit reporting companies,

but not displayed on your credit report. Negative items that have been closed out over seven ago generally fall

into this category.The data still exists at the credit reporting company, but is not included in most credit reports".  ___Justin Pritchard

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"You may never know what results come of your actions,
but if you do nothing, there will be no result" ~ Mahatma Gandhi

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