A credit rating is a broad term used for a number assigned to you based on the credit report of yours. A FICO score is one of these scoring designs and it is a brand of credit score. What that does for all the buyers is sometimes boost misunderstandings. You will find a few things to realize.
The very first thing is, if you are talking about credit scores, you are talking in general. It is a misconcepcion that there is only one credit score. There are several diverse scores that are available. Every one of the three credit bureaus has their own. There is also a joint project named a VantageScore that was produced by all three bureaus in conjunction. These are only 2 of what may be a 1000 various credit scores in use right now by lenders.
If you're discussing a FICO score, you're talking about a type of credit score. It was produced by Fair Isaac and they've been in the free credit repair service scoring business since the 1950's. It's probably the most recognized face of credit scores. The history comes from the recommendation of Freddie Mac and Fannie Mae to use FICO scores in mortgage lending.
To further complicate things, you can find various versions of the FICO score. You are going to find you in addition have a Beacon score. This's specific to Experian, the largest credit bureau. This is the marketing and advertising label they will use for the FICO score.
The scale of all these credit scores may also differ. For instance, the VantageScore works on a credit rating range of 501 to 990. The FICO score utilizes a range of 300 to 850. Your credit rating could vary in accordance with the weighing machine. Meaning, you may have a good rating with just one and an average with the other person.
The question for people is which credit score can I worry about. It might be a question of what item may be the lender using, but the starting place is your FICO score. This is the market leader and it is often used in the majority of mortgages. It might be the basis of a lot of the other scores. You must also get a score according to all three credit reports. You will find that the scores are different on each. This is due to reporting by the accounts of yours to one bureau and not the other. If you would like the FICO score of yours, you need to head to the source and check out Fair Isaac credit score internet site, MyFICO.com