FICO vs. FAKO

How to Ensure You Get Your "Real" Credit Score

FICO vs. FAKO
June 22, 2016

What is your "real" credit score? If you have purchased your credit score from multiple sources, you will probably find a wide discrepancy in numbers. How can you be sure which one is real?

The credit scores are all real; they just represent different things. Remember, they are all estimates.

Most people consider the FICO credit score as the "real" credit score. The majority of mortgage lenders and other credit sources use this score to evaluate your credit risk. The FICO score is created by proprietary software from Fair Isaac and Company (FICO) and is currently produced by myFICO.com, the consumer division of FICO.

FICO receives information from the credit reporting agencies (primarily Experian, Equifax and TransUnion) and uses its own formula to produce the FICO score. However, Experian, Equifax and TransUnion use other rating systems to evaluate the same information and produce their own credit scores.

Generally, the score you receive by purchasing information through one of these agencies is not a FICO score – they have their own competing system known as VantageScore. The credit scores produced by the reporting agencies are generally used for consumer reference purposes as a relative check on credit. They are not likely to be the ones used by lenders, although they are based on the same information (thus the name "FAKO").



Imagine that you take a math test and submit it to be graded by twenty different teachers. Some teachers assign different point values to different questions. Others grade on the curve. Still others throw out certain questions. You end up with twenty different grades. However, the only one you care about is the one that is used to determine whether you pass or fail.

So it is with credit scores, with one break in the analogy. Most of the time the FICO score is the "teacher" that determines whether you "pass" or "fail," but you cannot be completely sure.

The only absolute way we know of to be sure you are getting a true FICO score is to obtain it through myFICO.com. If anyone else claims to have a FICO score, dig into the version of FICO that they use. Because FICO is a software algorithm that is constantly being updated (currently at version 8), you could legitimately be receiving a "FICO" score that does not match the one you get from myFICO.com because an older software version was used.

In the end, your "real" credit score is a bit like Santa Claus – a fictional concept with real meaning that everyone understands but applies slightly differently in his or her own household. (Apologies to parents whose kids read this.)

The real message is that you have no one true credit score – not even the FICO score, although the FICO score comes closest – because your potential lender may be using data from a different credit reporting agency or a modified FICO scoring version – or not even use the FICO score at all.

How Do You Track Your Credit?

We suggest starting by getting a free credit report, credit score and credit monitoring at MoneyTips Credit Manager. Use that score as a general indicator of any trouble.

In short: yes, Virginia, there is a real credit score. A thousand years from now, nay, ten times ten thousand years from now, credit scores will continue to be used by lenders to evaluate loan applications. (Apologies to the New York Sun.) However, by then it may not be a FICO score.

You can check your credit score and read your credit report for free within minutes using Credit Manager by MoneyTips.


Photo ©iStock.com/KirbyHamilton

  Conversation   |   9 Comments

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Erin | 06.22.16 @ 20:02
Great information. It's nice to know there is a definitive source to go to to get your actual FICO score. I will remember this in case I ever need to know my true score. Thanks!
Carla Truett | 06.22.16 @ 20:02
I have always thought FICO was the only score. This is great information to have. Thank you!
Steffanie | 06.22.16 @ 20:02
Credit scores make menervous, even though mine is great. It really is interesting to see how they are calculated.
Nancy | 06.22.16 @ 20:07
I have always wondered about the FICO score and the variations. Hard to tell what's the real score. Godmother's real place I can go to to find out.
Alec | 06.22.16 @ 20:10
I had no clue they all used different ways to get the estimate. I always just checked that one free website to get a general idea of where we stood with our credit. As we plan to buy a new car soon, I should probably check which score the dealership looks at and check a site that uses that one to save us time.
Vebinista | 06.22.16 @ 20:11
It is interesting to see the different scores from the different places. For us it seems they are all pretty close. It's always good to know what your score is or at least have an idea.
brittany.martinez530 | 06.22.16 @ 20:30
This is great info. I have been working on getting my FICO score up as much as possible
Kailie | 06.22.16 @ 20:32
I had never even heard of a FAKO score before, so this is all news to me.
Daniel Dohlstrom | 06.22.16 @ 20:45
Now this many people need, so much talk in ads about watching your score people need to know what they really want to watch
$commenter.renderDisplayableName() | 12.09.16 @ 04:06
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