So How many credit scores do I really have?
It’s a simple question, but not so easy to answer. With around 29 FICO model scores alone it can get quiet confusing. Aside from the fact that there are Vantage 8.0 and Vantage 3.0 score models as well.
“There is no one score,” says Veronica Herrera, director of product solutions at Experian. “There are hundreds of different scoring models used by lenders. And there are thousands of more custom scores.”
Different credit scoring models weigh this information slightly differently, which is why we each have so many scores. The existence of multiple credit scores allows lenders to develop scores to address specific needs.
Equifax, Experian and TransUnion are three major credit bureaus. Each compile their own credit reports. But they don’t share information with each other, so your credit report for each bureau may be different. Creditors are also not required to report to the bureaus, and many don’t report to all three, which is another reason your credit score from each agency is different. Also each credit bureau has different credit information to be considered so what might qualify has an excellent credit score for one bureau might only be considered good for another.
Custom scores are based on specialized risk algorithms tailored to a specific lender for a specific purpose, like Mortgage loans. A custom scoring model may place more or less weight on certain factors (late pays/how many open accounts) based on the type of credit that you are asking to be extended and the potential risks associated with it. For example the FICO® Bankcard Score 8 model. Is a scoring model used by credit card issuers, and it places greater significance on how a consumers use their credit cards.
Through FICO’s website, myFICO.com, you can see your official FICO scores. Careful readers will note my use of the plural, scores. In fact, myFICO shows you a grand total of 16 different FICO scores.
While there are multiple scoring models out there, one of the most frequently used by lenders and other businesses is known as the FICO® Score, whose scale ranges between 300 and 850. (Most scoring models use a similar scale, though some go as low as 250 and as high as 900.) But even FICO® Scores can vary because there are several versions of the FICO scoring model. The most widely used FICO® version is FICO® 8, while the most recent one is FICO® 9.
Here’s the complete list, with a description of each score:
FICO Score 8: The most widely used FICO score
FICO Score 5: Older version, most widely used for mortgage lending
FICO Score 4: Older version, most widely used for mortgage lending
FICO Score 2: Older version, most widely used for mortgage lending
FICO Auto Score 8: Used for auto lending
FICO Auto Score 5: Older version for auto lending
FICO Auto Score 4: Older version for auto lending
FICO Auto Score 2: Older version for auto lending
FICO Bankcard Score 8: Used for credit card lending
FICO Bankcard Score 5: Older version for credit card lending
FICO Bankcard Score 4: Older version for credit card lending
FICO Score 3: Older version primarily used for credit card lending
FICO Bankcard Score 2: An older version used for credit card lending
FICO Score 9: The newest available FICO score
FICO Auto Score 9: The newest available score for auto lending
FICO Bankcard Score 9: The newest available score for credit card lending
In addition to the FICO® base score, there are also industry-specific scores issued by FICO®. These scoring models are developed with a specific goal in mind and allow lenders to be highly specific in their prediction model. For example, if you’re planning on buying a car, you might want to check your FICO® Auto Score, because it’s one of the most commonly used in auto lending decisions. If you’re looking for a new credit card, FICO® Bankcard Score is one many credit card issuers use.
One other commonly used credit score is the VantageScore®, which is based on a scoring model developed in 2006 by the three major consumer credit reporting companies—Experian, Equifax, and TransUnion. The most recent versions are VantageScore® 3.0, the most widely used version at Experian, and the newly introduced VantageScore® 4.0, which are both also based on a 300 to 850 scale.
The key is not to get hung up on any one credit score. Instead, it’s more important to look at the range your credit scores fall in, the variety of scores out there, and the principles used to create them. Credit scores are derived from complex mathematical formulas that look at the information in your credit reports and generate a number designed to communicate the likelihood that you’re going to pay your bills on time.
Most importantly do your research before you make any financial decisions.