When it comes to knowing your credit score, it can be a little confusing. There are a bunch of different TV ads on that tell you that you can obtain your credit score with their site. But do you know the differences in these credit scores? The information listed below can help you understand these differences.
The FICO credit score – The FICO is one of the oldest and most recognized score that is typically used by lenders. There are variations to the FICO score which includes a score from each of the three major credit bureaus. There are also some variations to the FICO score which depends on the purpose of the loan you’re trying to get.
The elements to the FICO score are your payment history, amounts that you owe, the length of your credit history, any new credit you have and the types of credit that you have used. This chart shows that heavier the item weight, the higher your score will be.
The FAKO credit score – The FAKO is actually a derogatory play off of the FICO credit score. In other words, it is a fake FICO score. The reason it is named as such is because the majority of lenders and creditors use the FICO credit score. Sure, knowing the FAKO score could be helpful, but it would be better to pay the same price to get your FICO, seeing as how that is the widely used credit score.
Mortgage Credit Score – FICO has introduced a mortgage credit score which will take into consideration the consumer behavior that was not previously being considered in whether or not a creditor or lender should grant a mortgage loan. This new score will be used by mortgage lenders and is called FICO Mortgage Score Powered by CoreLogic. The information that is provided by CoreLogic will form the mortgage score. The detailed report is called CoreScore Credit Report. Included in the report will be the information that is used by the three major credit reporting agencies which isn’t factored into the traditional reports.
Checking your score doesn’t’ have to be a scary thing. I’ve been there, it only seems intimidating. Knowing your score and staying on top of it will be beneficial to your future financial endeavors such as a loan for a house or a new vehicle. You’ll be glad that you checked and it will give you peace of mind to know where you stand.
Andrea is the Chief Chick of Smart Money Chicks. After filing BK twice (once because she panicked, second time because the pro messed the first time up), she realized that it all could have been avoided if she understood more about how her Finances worked and the options available. At that point, she wanted to help as many as she could never make the same mistakes again. Our Promise is that all the content you read on here is created or edited by Andrea