FICO Credit Scores Vs. Credit Scores – Is there a difference?
Most folks confuse official “FICO credit scores” with the “estimated credit scores” that are usually advertised for sale by most credit companies. You should understand that there is a huge difference between the two credit scores.
First, 90% of all banks, credit card companies, and other financial institutions only look at your FICO credit score. The other “estimated credit scores” that are sold (freecreditreport.com, transunion, etc.) are estimated credit scores based on each credit-score-provider’s unique credit scoring model.
So imagine that you were back in school and the grade you thought you received on a test was completely different than the grade your parents and educators saw! How useful is knowing your grade, if it’s not the one that really counts? Why should you care about, or more importantly pay for, a credit score that doesn’t really count?! We don’t think this is right.
Companies that sell these estimated credits scores take advantage of you. Most of the US population has no idea that there are different types of credit scores, and that what they are purchasing will never be seen by potential creditors who check their credit. These companies who sell “estimated credit scores” use the exact same scoring terminology as real FICO credit scores (a scale between 350-850) to further confuse customers into thinking that these credits scores are legitimate.
So where can you get real FICO credit scores? The only place you can buy you FICO credit scores is either from myfico.com or equifax.com. All other vendors are simply selling you an “esitmated credits scores,” which again may or may not be close to your real FICO credit score.
Remember this – only Equifax.com and MyFico.com sell official “FICO Credit Scores” – the Credit Scores 90% of all lenders use – directly to consumers. These are the only “Credit Scores” you should care about (and ever pay for). By doing this you will know exactly how lenders see you, and you won’t have any nasty surprises when you are buying your next car, house, or applying for a new credit card.
Its gave me some good info
If it is my credit then my do I have to pay for it??? Just doesn’t seem fair!!
I have a huge problem with the credit agencies. First of all the burden of proof lie upon you, the consumer to prove something on your report is wrong that you never knew was there in the first place. That is just 100% wrong. Second, why should we, the consumer have to pay for our own FICO score when everyone else can get it and we cannot. The entire system is so wrong. It was set up wrong. The credit agencies work for the businesses and we, the consumer, are guilty until proven innocent.
This is so true…… I pulled my own credit report from truecredit.com which shows your your “credit score” from all 3 bureau’s before applying for a home mortgage loan. They were pretty decent online, so I thought Id be able to apply and get approved for my loan no problem. BOY DID I GET A SURPRISE, when my loan officer called and told me my scores were to low. I questioned her, and she said my ACTUAL scores were almost 100 points lower than the ones I had just seen online a few days prior. This was such a huge disappointment. If i would have known that the “credit scores” online weren’t accurate and my real scores were as low as they truly are, I would have never even went to apply. I could have saved myself the heartbreak and embarrasment of being denied….
Sharon,
I so agree with you!
Welcome to our crooked government. Politicians on both sides of the isle, democrats and republicans alike are in bed with our financial institutions. Deep pocket books. Only way to change the system is boot out all the crookedness!
Doesn’t any one ever respond to these comments?
Regarding doesn’t anyone respond to these comments; i would like to but first i want to tell you i am a 16 year experienced mortgage banker.
everything lexington law is saying is absolutely true!
about the system being backwards…that also is absolutely true. the credit reporting agencies have hired lobbyist that have gone to washington and successfully lobbied our elected officials to basically make us guilty and to have to prove our innocence. the garbage credit scores they sell on tv should be out lawed. i groan when some one comes into my office to make loan application tightly clutching their fako credit report. they get mad at me when i have to tell them what their real credit score is. they are so mad they wont even listen because they have heard on the news how us lenders are trying to put people into subprime products to make more money off them. the press is to blame for this misinformation as well. they try to sell news stories by taking an isolated instance of a bad apple putting someone into a subprime loan product and make it sound as if its standard practice. it’s now almost impossible to make anybody a loan that doesn’t have a 740 fico score. if your fico score is below that the banks rape you with what they call risked based pricing that adds many thousands of dollars onto the costs of getting a loan. never before in history has it been more important to have good credit and that magic number is 740. we use the middle fico score taking the high and the low and tossing them out. your mid fico needs to be 740. by the way, those cute credit score advertisements for ordering your credit score….look at the fine print at the end of the ad. you’ll be amazed to see that they are being run by the credit reporting agencies themselves. the same ones that wont give you the consumer your fico score. how wrong is that?