Did you know there are over 30 credit scores used Today?
When lenders check your credit scores they are using one of the many FICO scores. Some of these scores are industry specific (Auto, Mortgage, Credit Card). Each score weighs different factors on your credit report differently. Below we have provided a brief overview of the most common Equifax FICO Scores for you to understand.
EQUIFAX FICO SCORE VERSIONS
FICO SCORE 5 FICO AUTO SCORE 5 &FICO BANKCARD SCORE 5
The FICO 5 score is very popular with lenders, particularly with mortgage lenders and is one the earlier FICO Scores. This score model is less forgiving of collection accounts and late payments. Late payments within 12 months have a very high impact on this score as well.
FICO SCORE 8 FICO AUTO SCORE 8 & FICO BANKCARD SCORE 8
FICO score 8 was introduced in 2009 and is used very commonly used especially in the Auto Industry. One of the key differences in this score version is that it does not penalize your score for collections under $100. This score is also more forgiving of isolated late payments. Meaning if you have 5 accounts and miss one payment with only 1 account the score will not drop significantly like other score versions.
FICO SCORE 9/ FICO AUTO SCORE 9/ FICO BANKCARD SCORE 9
The FICO 9 score model was created in 2014 for lenders and then rolled out to consumers in 2016. This score is not widely used in 2021. A major difference with FICO 9 is that paid collections do not calculate in your score. What that means is that any collection with $0 balance will not hurt your score. Medical collections are also less of a factor in FICO 9. Recent research suggests medical bills were less likely to be an indicator of credit risk. Another big change was the rental history now being calculated in your score as well. Previous versions did not calculate your rental history if reported.
Knowing your credit score is very important especially in today's economic climate. Negative items will cause denials and low score ratings for consumers. At Valiant Credit Services we specialize in the removal of negative items and also help improve our clients scores as part of the credit education process. Contact us today if you have questions about your credit report and credit score. Schedule a FREE consultation with a Senior Credit Consultant today. You can do this by clicking the link BOOK NOW OR CALL 866-373-1377.
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Sources
www.MyFico.com
www.Experian.com
*****Opinions, analyses, reviews or recommendations expressed in this article are based off in house research done by Valiant Credit Services, LLC and quoted sources.