90% percent of Lenders use the FICO score Model when making decisions, but most people do not know what FICO Version they are using.
There are several FICO Score Versions that are most commonly used by lenders. The version is used based off the type of loan and what credit bureau your lender uses to pull your score. Below is a guideline to the FICO Scores used
CREDIT BOOST TIP: Actively use credit cards to generate addition payment history. Carrying a zero balance will not help boost your score because no payment is being made on the account. |
Why Are There Multiple Versions of the FICO® Score?
When a new FICO Score version is developed, it is released to the market and then each lender determines if and when they will upgrade to the latest version. Some lenders upgrade quickly, while others may take longer. This is why some lenders are currently using different versions of the FICO Score.
Certain FICO Score versions are optimized for specific loan types, such as auto loans and credit cards. The foundation of these industry-specific FICO Score versions is the same as the base FICO Score versions, but they are fine tuned based on industry-specific risk behavior.
Generally speaking, many people will notice that their scores, across different versions, are relatively close. For example, if your FICO Score 8 base version is high, most likely your FICO Auto Score 8 will also be high. However, the versions can vary as each score version is an independent and unique assessment of your credit risk.
Which FICO® Score Matters?
The score that matters most is the version that your lender will actually use to evaluate your credit application. It's important to focus on the FICO Score version that's most relevant to your near-term credit needs.
What Are the Ratings?
Score ratings can be: Poor, Fair, Good, Very Good or Exceptional, defined by the ranges in the chart below.
Exceptional 800-850 Very Good 740-799 Good 670-739 Fair 580-669 Poor 300-579
Have Questions About your credit score? Schedule A FREE CONSULTATION with one of our credit consultants.
*******FICO SCORE 10 FICO SCORE 10T FICO AUTO SCORE 10 AND FICO BANKCARD SCORE 10 NOT SHOWN ON CHART
***FICO 8 most commonly used for other types of credit such as utility, personal loans, student loan and retail credit.
FICO® Score 5, 4 & 2 Mortgage
FICO Score 5 based on Equifax data, FICO Score 4 based on TransUnion data and FICO Score 2 based on Experian data are older FICO Score versions used predominantly in mortgage lending. These versions may also be used by some lenders for other credit product application evaluations (such as credit cards, personal loans, retail credit, student loans, etc.). These scores typically weigh your long term payment history and loan balances more than other scores. FICO® Scores 5, 4, & 2 range from 300 to 850 – higher scores are better.
FICO® Auto Score 5, 4 & 2
FICO Auto Score 5 based on Equifax data, FICO Auto Score 4 based on TransUnion data and FICO Auto Score 2 based on Experian data are earlier FICO Score versions that are fine-tuned for auto lending. Many banks, auto dealers and other lenders use these versions for auto financing evaluation. FICO Auto Scores 5, 4 & 2 range from 250 to 900 – higher scores are better.
FICO® Auto Score 8 & 9
FICO Auto Score 9 was released in 2014, and it is the most common auto industry-specific version after FICO Auto Score 8. Both FICO Auto Scores 8 and 9 range from 250 to 900
CREDIT SCORE TIP: Carrying 1-10% balance of the credit limit is best to keep your score the highest. |
FICO® Score 3
FICO® Score 3 based on ONLY Experian data and is an earlier FICO® Score version used predominantly in credit card lending. FICO Score 3 ranges from 300 to 850 – higher scores are better.
FICO® Bankcard Score 5, 4 & 2
FICO Bankcard Score 5 based on Equifax data, FICO Bankcard Score 4 based on TransUnion data and FICO Bankcard Score 2 based on Experian data are earlier FICO Score versions that are fine-tuned for credit card lending typically factoring in your credit card activity a little more than most. FICO® Bankcard Scores 5, 4 & 2 range from 250 to 900
FICO® Bankcard Score 8 & 9
We released FICO Bankcard Score 9 in 2014, and it is the most common bankcard industry-specific version after FICO Bankcard Score 8. The newer FICO Bankcard Score 9 allows credit card balances to be higher and not impact the score as much as previous versions. Both FICO Bankcard Score 9 and 8 ranges from 250 to 900
FICO® Score 10
A recently released version of FICO Score. At this time, consider your score a preview of what many lenders will likely use in the future.
This updated version captures the subtle shifts in consumer credit data that have occurred over the 5+ years since FICO® Score 9 launched, such as the increasing use of personal loans.
FICO® Score 10 T
Another recently released version of the FICO Score . At this time, consider your score a preview of what many lenders will likely use in the future.
FICO Score 10 T builds on FICO Score 10 by also assessing "trended credit bureau data" when determining your score. The "trended data" considers a longer historical time frame (the previous 24 to 30 months) of your balances and credit limits to get a more refined view of your credit risk
What else do Lenders look for on your credit report?
When determining your approval lenders view the items reporting on your credit file. Some items will cause an automatic denial. These would include bankruptcies, rental properties owed, and even recent late payments on accounts. Always check your scores and view your credit report. Ask the lenders questions about items reporting on your credit report before applying.
Have Questions About your credit score? Schedule A FREE CONSULTATION with one of our credit consultants.
Knowing your credit score is very important. Your Credit rating can determine your employment and quality of living. Negative items reporting will cause denials and low score ratings for consumers. At Valiant Credit Services we specialize in credit disputes to help clients remove negative items through our credit repair services and also improve our clients scores as part of the credit education process. Contact us today to get clarity on your credit report and credit score. You can Schedule a FREE consultation with a Senior Credit Consultant today. CLICK BOOK NOW OR CALL 866-373-1377.
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