FICO® Score – The Score Lenders Use (2024)

FAQs

What FICO Score do lenders use? ›

While most lenders use the FICO Score 8, mortgage lenders use the following scores: Experian: FICO Score 2, or Fair Isaac Risk Model v2. Equifax: FICO Score 5, or Equifax Beacon 5. TransUnion: FICO Score 4, or TransUnion FICO Risk Score 04.

Many lenders use FICO Scores to make decisions about credit approvals, terms, and interest rates. Chances are when you apply for a mortgage, an auto loan, credit card, or a new line of credit, the bank or lender is looking at your FICO Score.

The FICO® Score, used by 90% of top US lenders, is the standard measure of consumer credit risk in the US and has been made available in over 40 other countries, improving risk management, credit access and transparency.

Lenders often use credit scores to help them determine your credit risk. Credit scores are calculated based on the information in your credit report. In most cases, higher credit scores represent lower risk to lenders when extending new or additional credit to a consumer.

What credit score is needed to buy a $300K house? The required credit score to buy a $300K house typically ranges from 580 to 720 or higher, depending on the type of loan. For an FHA loan, the minimum credit score is usually around 580.

The FICO credit-scoring model has been updated over the years, resulting in multiple versions of the score. FICO Score 8 is the most commonly used. But the version may vary by lender and credit product, like applying for a credit card versus financing a car.

Step 1 – Check with your bank or credit union

Hundreds of banks and credit unions partner with FICO through its Open Access Program. If your bank or credit union partners with FICO, log in to your account online. You will likely be provided with a free FICO Score.

The majority of lenders rely on FICO credit scores, but it's possible that a lender may use an alternative credit scoring model when determining whether to approve you for a loan or line of credit.

The primary credit scoring models are FICO® and VantageScore®, and both are equally accurate. Although both are accurate, most lenders are looking at your FICO score when you apply for a loan.

Simply put, there is no “more accurate” score when it comes down to receiving your score from the major credit bureaus.

Is a 900 credit score possible? ›

Highlights: While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.

There isn't a single credit bureau that's universally favored by all issuers. Some banks pull from Equifax, some from Experian and others from Transunion when evaluating credit card applications. Other banks pull your credit report from two or even all three bureaus.

For other types of credit, such as personal loans, student loans and retail credit, you'll likely want to know your FICO^® Score 8, which is the score most widely used by lenders.

For a conventional mortgage in California, you typically need a minimum score of at least 600. If you qualify for certain government-backed loans, however, you may be able to buy a home with a score as low as 500.

The most commonly used FICO Score in the mortgage-lending industry is the FICO Score 5. According to FICO, the majority of lenders pull credit histories from all three major credit reporting agencies as they evaluate mortgage applications. Mortgage lenders may also use FICO Score 2 or FICO Score 4 in their decisions.

Applying for a credit card? You'll likely want to know your FICO^® Bankcard Scores or FICO Score 8, the score versions used by many credit card issuers.

The most commonly used FICO Score in the mortgage-lending industry is the FICO Score 5. According to FICO, the majority of lenders pull credit histories from all three major credit reporting agencies as they evaluate mortgage applications. Mortgage lenders may also use FICO Score 2 or FICO Score 4 in their decisions.

A true FICO score ranges between 300–850 and gets calculated using only information in a consumer's credit report maintained by the three main credit bureaus— Experian™, Equifax^® and TransUnion^®. To receive a FICO Score, you must have a credit account at least 6 months old and activity during the past 6 months.

The FICO auto score that lenders look at is measured using the 9 XT version of auto score measurement. This version is designed to take into account the past 30 months of credit behavior using data from TransUnion's CreditVision system.