Anonymous
Anonymous asked in Business & FinanceCredit · 1 decade ago

Credit Scores and differences?? FICO?

I had checked my transunion trans risk credit score--low and behold it said 790 (400-950 scale) I was like WTF? can't be, that's great. But I knew that wasn't a FICO score. What is FICO and how does it differ? I checked all 3 bureaus once again and by golly now there ranging 635-655??? How the hell did that happen ? And i thought I had good credit.

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  • Ted
    Lv 7
    1 decade ago
    Favorite Answer

    There is no such thing as one FICO score. There are many. Fair Isaac Corporation develops scoring formulas for business decision making on contract. That means that each of the CRAs has paid to have their own formulas developed and they aren't going to let anybody else see them. SO, if you run data through different formulas, you can expect different scores to come out.

    Third, I did say "formulas" (plural). The purpose of this exercise is not to create a number for the sake of having a number, but to predict reliable customer payments. A formula that predicts whether someone is a good customer for a three-year car loan is not necessarily going to predict a good customer for a thirty-year home mortgage and is not necessarily going to predict a good customer for a month-to-month revolving credit card and is not necessarily going to predict a good customer for an insurance company. So, the CRAs have developed multiple formulas to meet the differing needs of different customers.

    And now for the surprise. Some creditors don't use the CRAs scores at all. They read the full report. Others get the reports over a computer-to-computer link and score them themselves rather than pay the extra charge for the CRA score. I worked for such a company in the information systems department. We had hired our own in-house mathematician to develop a formula to predict who would be a good customer for our company.

  • Anonymous
    1 decade ago

    Fico is the score that credit companies use. It is the most accurate. I know transunion is bs because they are also truecredit. However they shouldnt have been that big a discrepancy. usually maybe a 25 point difference. And credit scores only go up to 850 not 950 so that is a red flag right there.

    http://creditcardwarehouseonline.com/

    http://creditcardwarehouse.ecreditdirectory.com/

  • 1 decade ago

    Fico is the standard credit scoring company, Fair Issac Company.

    Right now is the best time to check your genuine FICO scores since they are having a 25% off sale thru April 30.

    Find the link to "FICO standard". You can check one or all three.

    I have truecredit, thru Transunion, They rate me in the mid 600's HA HA! My FICO scores are over 700. I applied for a mortgage, and they rated me at 725. The mortgage used a private scoring company that is not available to the public.

    Visit the links below for more info and for education on credit scoring.

    FICO is more accurate. This is what I am finding all around.

    http://myfico.com/

    http://creditboards.com/

  • 1 decade ago

    Ya got your FICOs, and your Fake-Os.

    There are only three places to get FICOs, and only one place to get all three. They are listed below. Get scores from anywhere else, and you're looking at something that most lenders don't use.* Why bother?

    Find out why your scores are low (see the "reasons" that they are not higher (aka "reason codes") listed in order of severity) with any of those services. Also, to find out how to improve them, use the Score Simulators to find out what actions will have what effect.

    *One exception that I know of: VantageScore says that they have Kohls on board.

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  • 1 decade ago

    fico scores are the only true scores, the rest are called fakos and are not accurate,each credit bureaus have a different range they run from 300-950 depending on which one you pull from

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