topic Re: FAKO vs FICO...What a difference!!! in Understanding FICO® Scoring

FAKO vs FICO...What a difference!!!

Anonymous — Sat, 06 Oct 2007 22:19:37 GMT

Okay, so I use freecreditreport.com. No one shoot yet! I like keeping an eye on what's going on with our credit reports. At first, I thought their PLUS score was a FICO, but learned a couple of months ago (thanks to this forum) that it's not the case. Still, I thought it would be close. I mean, how different can the algorithms be?

Here's how different. Experian/freecreditreport.com had my plus score at 694. I have flawless (but short, about 2 years) payment history. Real estate mtg's in excellent standing for a year, and a truck that I haven't missed a payment on yet (19 months now). My limits on CC's were relatively low ($300-2,000), but again, good payments. I have a lot of inquiries, thanks to buying/refinancing truck and buying a house (they don't abide by the 15 day rule, apparently), and my UTL on cards was around 40%. So I figured, great, this sounds about right, especially after watching it climb from 620 over the last couple of years.

So, me being proud and in high cotton, I waltzed into a local CU with my report. She said there was no reason I shouldn't be 'A' credit (680+), but she'd have to pull her own bureau. No biggie, right? 5.5% auto loan, coming right up! So she proceeded to pull my Equifax (not Experian, obviously). Drumroll....

582!!! What on earth?! They worked with me, and I got a 7.5% rate, but come on! That's over 100 points different! What gives?

Re: FAKO vs FICO...What a difference!!!

Anonymous — Sat, 06 Oct 2007 22:29:04 GMT

Good question Frank. I can't help you, but have wondered why they even HAVE FAKO scores, if no lenders use it in their considerations of granting/not granting you credit.

It really gives false hopes to someone with borderline credit, needing something and only finding out, what they trusted, cannot be.

Good luck to you.

Message Edited by Sylviatob on 10-06-2007 03:29 PM

Re: FAKO vs FICO...What a difference!!!

haulingthescoreup — Sat, 06 Oct 2007 22:50:28 GMT

You've got two things going on, Equifax vs Experian, and FICO vs FAKO. That means you're not just comparing apples and oranges, you're comparing apples and window air conditioners. I've got nearly a 40 point difference between FICO EQ and FICO EX, and that's scores from the same scoring site. Then I've got a 67 point difference between EQ FICO and EQ FAKO, and that's scores derived from the same CRA data.

FICO's: EQ 654 - EX 691 - TU 681
FAKO's: EQ 721 - EX 644 - TU 660

When I'm feeling kind, I figure that the sites with FAKO scores are rewarding and penalizing credit factors differently, according to what they believe predicts good credit behavior. When I'm less kind, I think they're just trying to get some market share from this site, and they feel obliged to make up numbers, because that's what customers expect.

Sorry about the unpleasant surprise at the CU. I'm glad they worked with you! score one for CU's.

Re: FAKO vs FICO...What a difference!!!

Anonymous — Sun, 07 Oct 2007 14:56:32 GMT

Haulingthescoreup makes a good point, especially when it comes to cross-CRA scores. I guess it's just a pyschological thing...what one company thinks is responsible behavior can mean something totally different to another. I mean, if I had a dollar for every time someone asks me whether having high limits is bad (potential credit) versus good...well, I wouldn't worry so much about my score, because I'd buy more things in cash!

Point taken...maybe one day these folks will be regulated, the smoke will clear, and we'll all know about this kooky system that controls a good part of the financial aspect of our lives! Until then, more knowlege is power, and thanks to this forum, we can share in that. Thanks for the input!

Re: FAKO vs FICO...What a difference!!!

RobertEG — Mon, 08 Oct 2007 17:51:37 GMT

VantageScore vs. FICO score The VantageScore is based on six variables, versus the FICO score's five variables. Here's a comparison of the two: Vantage score Payment history

32%

Utilization

23%

Balances

15%

Depth of credit VantageScore vs. FICO score The VantageScore is based on six variables, versus the FICO score's five variables. Here's a comparison of the two:

13%

Recent credit

10%

Available credit

Total

100%

FICO score Payment history

35%

Length of credit history

15%

Amounts owed

30%

Types of credit uses

10%

New credit

10%

Total

100%

Re: FAKO vs FICO...What a difference!!!

Kat — Mon, 08 Oct 2007 20:39:27 GMT

One more score variation to consider. Since you were seeking an auto loan, did the CU pull an 'auto enhanced' FICO score?

Re: FAKO vs FICO...What a difference!!!

Tuscani — Tue, 09 Oct 2007 17:37:53 GMT

Welcome.. Please read the Scoring 101 thread:

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=2654

Re: FAKO vs FICO...What a difference!!!

PayYouNever — Tue, 09 Oct 2007 20:14:13 GMT

Isn't a consumer fraud for sites to claim that they are providing accurate credit information if they're not providing exact FICO data?

I'm TU needs to be horsewhipped for offering its TrueCredit service, if it's inaccurate in representing one's profile for creditworthiness. I mean, it begs the question, "is there any accurate about the report available online?" Why not dispute everything on there that is negative -- regardless if you know it's true or not?

Maybe I'm frustrated, because over the last 10 months I've been late on nothing, have opened up an Orchard bank card that came with set-up charges already on it -- putting my UTL at 65% for the get-go (i've paid it down to 50%), but have seen no change or drops in my scores.

Im working on bringing down my UTL, because the myFICO simulator indicated that my score would be in the low 600s in 3 to 6 months by doing that (its in the low 500s now).

Re: FAKO vs FICO...What a difference!!!

RobertEG — Thu, 11 Oct 2007 09:35:29 GMT

Good question about liabilities. Yes there has been much litigation over FAKOs, their affect, and what they purport to offer. For good answers, do a Google on CreditXpert, scroll down to the link titled "CreditCourt Forum: Snake Oil Scores" (it is at the forum.creditcourt.com web page), and read what a litigating attorney has to say and has done about the damage of FAKO scores. She emphasizes that they give so much fake information and guidance that they are often more harmful than beneficial, and has litigated numerous cases on behalf of consumers who have relied upon both them and their advice. She advises strongly to obtain only actual FairIsaac FICO scores,and not any of the FAKOS which almost always give credit advice in their analysis sections that , if followed, will in fact damage a real FICO score.... such as closing accounts, and the persistence of negative affects of bankrupty for 10 years. Interesting and helpful reading that I recommend to those buying, and more importantly, relying upon FAKOs. As an example, here is what she says about the "too many open accounts" criticism as a negative factor in their score:

Credit accounts : You have 4 credit card account(s) listed in your credit report.
This only includes open accounts.
This is making your score higher. Having accounts listed in your credit reports is a positive factor because the accounts' payment history shows lenders how you pay your bills. However, having too many accounts may be considered a negative factor because lenders worry that you are spending (or preparing to spend) beyond your means, even if you have never missed payments. Also, if you do not currently have credit, getting your first few credit cards may be difficult and may involve high fees, high interest rates, and low credit limits. Note that finance trades (such as debt consolidation accounts) are often associated with troubled credit, and may therefore be considered a negative factor.

[I've rarely read so much misinformation. Many people read the remarks on having credit available and CLOSE accounts. It is not true that many open accounts are bad - you have to have 10 or more revolving accounts and it doesn't matter whether they're open or closed. CLOSING accounts can ONLY hurt you!

I have NEVER seen a "too many accounts" Fair Isaac factor for a score below 700. But I've seen MANY MANY low scores because they didn't have enough credit available (High B/L ratio.)]

It's obvious that they have NOTHING useful to say and just ramble on to waste some paper. Don't waste your time reading these scores.

Message Edited by RobertEG on 10-11-2007 02:30 AM

Message Edited by RobertEG on 10-11-2007 02:34 AM

Message Edited by RobertEG on 10-11-2007 02:35 AM