Credit Scores – Let Me Count the Ways

When looking over your credit reports and scores, you may find that it has been calculated in a certain way. Although you may have been under the impression that it is simply a score, there are several ways in which your report can be calculated. The most popular way to calculate it is to use the FICO method or a newer method called Vantage Score. Another method that is sometimes used is the FAKO method and any one of these can be used to calculate a “correct” credit score.

The numeric value that is given to your credit history based on the information that is contained in your credit report is known as your score. The number ranges from 300 to 850 with higher numbers reflecting a better credit rating. The primary company used to calculate scores is FICO, which is known as the Fair Isaac Corporation. FAKO, depending on your source of information, is any other type of score that is calculated and sometimes attributed to the calculations done by the three major credit bureaus.

Those in the industry consider the credit score calculated by FICO to be the brand name for calculating credit Vegasgoal scores. They consider it to be the one that presents a true picture of the health of your credit ratings as the company has a secret algorithm that it uses to calculate depending on various factors, one of which is the industry in which you work.

A credit score calculated using the FAKO method is considered a credit score that is not a FICO score. Its primary use is for educational purposes and often does not reflect the information that lenders use to determine your rating. Some lenders will not even consider FAKO scores as they have found them in the past to be inaccurate and often as many as 100 points off the FICO score.

Leave a Reply

Your email address will not be published. Required fields are marked *