A credit score is a general term used for a number given to help you based on the credit report of yours. A FICO score is one of these scoring designs and is a brand of credit score. What that does for the customers is sometimes increase confusion. There are certain things to realize.
The very first thing is, in case you're chatting about credit scores, you are talking in general. It is a misbelief that there is only one credit score. There are lots of different scores that are available. Every one of the three credit bureaus has their own. There is also a joint project known as a VantageScore that had been developed by all 3 bureaus in conjunction. These're only two of what might be a thousand different credit scores in use right now by lenders.
If you're talking about a FICO score, you are speaking about a sort of bad credit loans easy approval (www.elzse.com) score. It was produced by Fair Isaac and they have been in the credit scoring business since the 1950's. It's probably the most recognized face of credit scores. The past is from the recommendation of Freddie Mac and Fannie Mae to make use of FICO scores in mortgage lending.
To further complicate things, there are different variations of the FICO score. You will find you in addition have a Beacon score. This's unique to Experian, the largest credit bureau. This is the marketing and advertising label they normally use for the FICO score.
The scale of all these credit scores could also differ. For example, the VantageScore works on a credit score range of 501 to 990. The FICO score uses a selection of 300 to 850. Your credit rating could vary based on the scale. Meaning, you might have a great rating with a single and an average along with the other person.
The question for customers is which credit score can I worry about. It could be a question of what product could be the lender using, though the place to start is your FICO score. This is the market leader and is often-used in the vast majority of mortgages. It could be the basis of a lot of the other scores. You should also get a score according to all three credit reports. You will find the scores will vary on each. This's due to reporting by your accounts to one bureau and not the other person. If you need the FICO score of yours, you need to head to the source and check out Fair Isaac credit score website, MyFICO.com