Become informed — new FICO® Scores that may help you get access to credit at more attractive rates
UltraFICO™ Score
The UltraFICO Score is a new type of FICO Score that may benefit people who have a lower FICO Score or no FICO Score at all. By incorporating a wider variety of data, the UltraFICO Score can score more people and can give others the chance to increase their score. The UltraFICO Score has two key differences compared to traditional FICO Scores:
The first key difference is that the UltraFICO Score uses a combination of credit report data and information about your money habits from your bank accounts — such as your checking account and/or savings account to generate an UltraFICO Score (traditional FICO Score versions use only credit report data).
The information about your money habits used to generate the score include:
- Length of time your bank accounts have been open
- Recency and frequency of bank account transactions
- Evidence of consistent cash on hand in your bank account
- History of positive bank account balances
The second key difference between the UltraFICO Score and traditional FICO Score versions is that your UltraFICO Score is generated only if you opt-in. If you sign up and opt-in, you then enable the linking of your checking, savings or money market account information with your credit report data that is used to generate your UltraFICO Score.
FICO® Score 10 and FICO® Score 10 T
As consumer demand for credit, consumer use of credit, lender credit-granting requirements, and data reporting practices evolve over time, we periodically redevelop the FICO Score model to provide a more predictive score to lenders and consumers.
The most recent update to the FICO Score model is FICO Score 10 and FICO Score 10 T.
FICO® Score 10
FICO Score 10 relies on the same design and key ingredients of prior models as well as captures the subtle shifts in consumer credit data that have occurred over the 5+ years since FICO Score 9 launched, such as the increasing use of personal loans, especially for purposes of debt consolidation.
As long as consumers practice good habits like consistently paying bills on time, lowering their debt as much as possible, and applying for credit only when needed, they can achieve and maintain a good FICO Score 10.
FICO® Score 10 T
FICO Score 10 T builds on FICO Score 10 by also assessing "trended credit bureau data" when determining your score. Scores that don't use trended data typically use the most recently reported month of data to drive certain components of the score such as the most recently reported balance and/or credit limit on an account.
By contrast, with FICO Score 10 T the "trended data" considers a longer historical time frame (the previous 24 months or longer) of the balance and/or credit limit to get a more refined view of your credit risk.
The trended data allows the credit scoring model to determine what your "trend" is: are your balances trending up, down, or staying the same? Someone whose balances are trending up may be higher risk than someone whose balances are trending down or staying the same.
FAQs
The three credit bureaus, Experian, Equifax and TransUnion, track credit histories for individual consumers. Each credit bureau assigns consumer credit scores based on the information they receive from creditors. This means a consumer could have a different FICO score from each of the credit bureaus.
Which of the 3 credit scores is most accurate? ›
Simply put, there is no “more accurate” score when it comes down to receiving your score from the major credit bureaus.
What is the most recent FICO score model? ›
FICO's newest credit scores, the FICO 10 and 10T, made a big splash when they were introduced in 2020, primarily because of the 10T version, which looks back over at least 24 months of credit activity to predict future credit behavior.
Why are my 3 FICO scores so different? ›
Some lenders report to all three major credit agencies, but others report to only one or two. This means a credit agency may be missing information that helps or hurts your score. Scores are from different dates. Since your scores might change at any time, it's important to compare credit scores from the same date.
Which FICO score is correct? ›
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.
How to see 3 credit scores? ›
You have the right to request one free copy of your credit report each year from each of the three major consumer reporting companies (Equifax, Experian and TransUnion) by visiting AnnualCreditReport.com. You may also be able to view free reports more frequently online.
Which FICO score matters the most? ›
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.
Which FICO score do mortgage lenders use? ›
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.
Do lenders use FICO or Vantage? ›
FICO scores are the most widely used scores used by lenders to determine the creditworthiness of consumers. This means more institutions use FICO over any other scoring model to decide if someone should get a loan, mortgage, or any other credit product.
What FICO score do car dealers use? ›
The base FICO score is also called FICO Score 8 or 9. It's not designed specifically for auto loans, but many lenders use it. It's a number between 300 and 850, and a higher score means that a person is more likely to make loan payments on time.
What is the lowest credit score possible? Most of the credit scores that lenders use in the United States, including most versions of the FICO Score, range from 300 to 850. Therefore, most financial professionals generally accept that 300 is the lowest credit score a consumer can have.
Why is my FICO score 100 points lower than Credit Karma? ›
Your FICO Score is a credit score. But if your FICO score is different from another of your credit scores, it may be that the score you're viewing was calculated using one of the other scoring models that exist.
Do banks use TransUnion or Equifax? ›
According to Darrin English, a senior community development loan officer at Quontic Bank, mortgage lenders request your FICO scores from all three bureaus — Equifax, Transunion and Experian. But they only use one when making their final decision. If all of your scores are the same, the choice is simple.
Why is my Experian score so much higher than FICO? ›
When the scores are significantly different across bureaus, it is likely the underlying data in the credit bureaus is different and thus driving that observed score difference.
Which FICO credit score is the most important? ›
FICO 8 is still the most widely used credit score today. If you apply for a credit card or personal loan, odds are that the lender will check your FICO 8 score. FICO 8 is unique in its treatment of factors such as credit utilization, late payments, and small-balance collection accounts.
Which 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.
What's the difference between FICO 8 and FICO 9? ›
Which is better: FICO score 8 or 9? FICO Score 9 is slightly more forgiving than FICO Score 8 since paid-off debt in collections no longer factor in, medical debts are treated differently, and consumers get more help with their credit when their rent payments are reported to the credit bureaus.
Which credit score is most important, Equifax or TransUnion? ›
Neither your TransUnion or Equifax score is more or less accurate than the other. They're just calculated from slightly differing sources. Your Equifax credit score is likely lower due to reporting differences. Nonetheless, a “fair” score from TransUnion is typically “fair” across the board.
