FICO credit score

Your credit score is a numerical gauge of your ability to payback loans. The lender will look up this score to determine the risk involved in lending to you. So if you get a credit report and see a high score that means your credit is good. The fact is there are several different credit scoring methods. So how can you ever know what your credit score really is? You just have to know where to go.

FICO credit scoring was developed by Fair Isaac and Company as a numerical method of determining your credit worthiness. The scores range between 300 and 850 and are basically based on your past bill paying performance. The three major credit bureaus each have their own version of the FICO score: Equifax uses the Beacon system. All systems are based on the original FICO scoring method so generally your score should be equivalent from each. There is only one place where you can get your FICO score from all three bureaus and that is at www.myfico.com. Again be aware that these scores are "FAKOs" (or "fake") and can differ considerably from your FICO credit scores. Adding to the confusion is the credit bureaus themselves. Experian revealed that the national average credit score of its consumers is 678. This is very misleading to the average consumer. You are getting what they call the "PLUS Score," which is NOT a FICO score. And is NOT used by lenders anywhere. (Equifax is the exception. The only place to get all three scores together is at www.myfico.com.). The 678 PLUS Score reported by Experian is actually the average of consumers' PLUS Scores not their FICO Scores.

Non-FICO scores are worthless not matter what the credit bureaus or any website selling non-FICO scores claim. Even a few points difference in your credit score can mean confronting the reality of the loss of thousands of dollars out of your pocket--a loss that you probably didn't plan for. The next time you want the most accurate credit score available, do yourself a favor and get the industry standard: the FICO credit score.