Re: Accuracy of MyFico Scores?
04-16-2013 05:02 AM
I mean, now we throw in the FAKO score with the FICO score and the PLUS score. I was told that the credit bureaus use the FICO score but now I am hearing that they don't? Who the hell uses the right score to monitor our credit? If we're told that the lenders use FICO why are they using FAKO? Am I the only one who thinks this is ludicrous?
The CRAs tend to use their own scoring algorithms (that is to say, not FICO) for the scores that they sell consumers. Many people don't know the difference, and it saves the CRAs in licensing fees that they would have had to pay to Fair Isaac.
For example, you bought a "3-credit report" from Equifax, either from their "Equifax Complete" line of credit monitoring products, or their Complete Report. If you go to the Scores & Reports Product Comparison Page and click on any of the "Experian", "Equifax", or "TransUnion" links under "Credit Score Features", you'll get this message (there is also a similar one at the bottom of the page):
The Equifax Credit Score is a proprietary credit scoring model developed by Equifax. It is a calculation of the information in your credit file, and is used to predict credit risk. It can be used to calculate a score for not only your Equifax credit file, but also your Experian and TransUnion credit files. This score ranges from 280 to 850, with higher scores representing lower credit risk. In other words, higher score are better scores. Each score comes with detailed explanation and tools. There are numerous credit scores and models available in the marketplace and lenders may use a different score when evaluating your creditworthiness.
The scores that you cite from your "3-credit report from Equifax" are not FICO scores. The only products from the Equifax site that give you a FICO score are Score Watch and Score Power. All other scores, including any scores derived from TU and Experian reports, are FAKO (a catch-all term used here for non-FICO scores (as in "fake FICO"), rather than a specific scoring product like PLUS).
Starting Score: 461 (EQ 10/2012)
Current Score: EQ 622
Goal Score: 660
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