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FICO Score vs Credit Score: What’s The Difference?
By Victor Rosario MONEY RESEARCH COLLECTIVE
A credit score is a three-digit number that’s based on the information in your credit reports. Credit scores give lenders an idea of your creditworthiness, which is your ability to repay loans and keep up with credit card payments.
If you know about credit, you may have heard about FICO scores, a genericized trademark often used interchangeably with the term credit score. But while FICO is the most commonly-used credit scoring system in the U.S., there are other competing models.
Read on to learn the difference between FICO scores and credit scores.
Table of contents
- What is a credit score?
- What is a FICO score?
- What is the difference between a FICO score and a credit score?
- FICO score vs credit score FAQs
- Summary to our guide of FICO score vs credit score
What is a credit score?
A credit score is a value that measures your credit risk, and it’s typically represented as a three-digit number on a rating scale — say, 300 to 800. There are different credit scoring models, but two of the most popular are VantageScore and FICO. Both these credit scores are calculated based on your credit information, which the three major credit bureaus — Experian, Equifax and TransUnion — collect and make available in credit reports.
Lenders use your credit reports and associated credit scores to determine whether or not to approve your mortgage, auto or personal loan applications as well as the interest rates for which you qualify. The higher your credit score, the better your odds of approval for loans, lines of credit and other financial products. Higher scores also translate to lower interest rates, which means you pay less for borrowing.
Credit scores usually take into account the length of a borrower’s credit history, their payment history, credit mix and available credit, among other factors. Borrowers who are looking to open a new credit account or get approved for a loan should be mindful of these factors and understand how they influence their credit scores.
Types of credit scores
The two most popular credit scoring models used by financial institutions are FICO and VantageScore, with FICO having 90% of the market share.
But there are also different credit score versions of both models, some which are industry-specific. For example, credit card issuers use FICO Bankcard Score 9, whereas the most widely used version overall is FICO Score 8.
With this in mind, verify which credit score version is most pertinent to your situation when checking your credit score.
Credit score ranges
Credit scores usually fall on a numerical rating scale between 300 and 850, with good credit scores starting at 670 under the FICO model and 661 under VantageScore.
| Credit Range | VantageScore | FICO Score |
| Excellent | 780 to 850 | 800 to 850 |
| Very good | N/A | 740 to 799 |
| Good | 661 to 780 | 670 to 739 |
| Fair | 601 to 660 | 580 to 669 |
| Poor | 300 to 600 | 300 to 579 |
It’s also important to note that if you’ve applied for a credit account or loan, that hard credit inquiry could be affecting your credit. Hard credit pulls may temporarily affect your scores, but the effects shouldn’t last more than 12 months.
What is a FICO score?
A FICO score is a credit scoring system designed by the Fair Isaac Corporation. FICO scores were introduced in 1989 and quickly became the most widely used credit scoring system in America.
The company has several different FICO score versions running concurrently. Lenders, creditors and financial institutions are able to choose which version of the score to use when calculating consumers’ credit scores.
Types of FICO scores
MyFICO lists over ten different versions of FICO scores used by different industries. Auto lenders, mortgage lenders and credit card companies all use different FICO score versions.
The most popular FICO score versions are FICO Score 8 and FICO Score 9. But many mortgage lenders still use FICO Score 2, 4 and 5.
Other newer FICO score versions include:
- FICO Score 10: The latest and most accurate version of the score, according to MyFICO. It incorporates new consumer credit trends, like the use of personal loans for debt consolidation.
- FICO Score 10T: Unlike other credit score models that only take into account the most recent credit bureau data, this model looks at the previous two years of credit information and accounts for your credit balances and limits over that period.
- FICO Auto Score 10: A version specifically designed to measure credit risk in the auto dealership and lending industry.
- FICO Bankcard Score 10: A version designed for the retail credit card lending industry.
FICO score ranges
FICO scores range between 300 and 850. Scores between 670 and 739 are considered good, while scores above 740 are considered excellent.
The term “bad credit” refers to poor credit scores. According to the FICO credit scoring model, poor scores are those under 579.
Regardless of what model you’re using, improving your credit score can save you money and have a positive impact on your personal finances.
To maintain good credit, the Consumer Financial Protection Bureau recommends the following:
- Pay your credit accounts on time
- Stay below your credit limit
- Don’t apply for new credit accounts if you don’t need to
- Review your credit reports regularly
This last point is particularly important, as incorrect negative items on your credit reports could be hurting your score. To check your free credit reports, visit annualcreditreport.com.
Keep in mind that your credit reports won’t contain your credit scores. Read our article on how to check your credit score for more details.
What is the difference between a FICO score and a credit score?
FICO scores are a type of credit score. FICO’s scoring system differs from other credit scoring systems in how it weighs the content of your credit reports as provided by consumer credit reporting agencies.
For example, FICO places greater importance on payment history (35%) and amounts owed (30%), followed by length of credit history (15%), credit mix (10%) and new credit (10%).
VantageScore, on the other hand, evaluates credit factors based on how influential they are on your score. The most influential factor in the VantageScore 4.o calculation is total credit usage, balance and available credit, followed by credit mix and experience.
FICO score vs credit score FAQs
How many credit scores are there?
The two main credit scoring systems are FICO, the most popular among lenders, and VantageScore. However, both of these credit scoring models are updated periodically, so there are several different versions of each score.
What is a good FICO score?
A good FICO score is usually defined as being in the range of 670 to 739.
Is a FICO score higher/lower than your credit score?
Although FICO scores are the most commonly-used credit scores, other credit scoring systems — such as VantageScore — may prioritize credit factors differently. Your credit score may vary depending on the credit scoring model used and even the particular version of the model.
Summary of our guide to FICO score vs Credit score
When people think of credit scores, FICO scores are usually what comes to mind, but there are other credit scoring systems. Nevertheless, when financial institutions say they will check your credit score, they’re probably referring to your FICO score. As a general rule, you should check your credit score and credit report regularly to know where you stand before requesting a loan.
