Posted by William Charles on February 19, 2014
Credit Scores

Published on February 19th, 2014 | by William Charles


FICO Score Vs FAKO Score: What’s The Difference?

If you spend any amount of time around the consumer credit community, you’ll hear the words FICO & FAKO a lot. But what’s the actual difference?

  • FICO Score: a credit score that usually ranges between 300 to 850 (for the classic score, industry specific scores such as bankcard enhanced are between 250-900), used in the majority of lending decisions (90+%)
  • FAKO Score: is the name given to any score that isn’t a FICO score. Usually not used by lenders and often vastly different to a persons FICO score.

Not all FAKO scores are created equally though, some are in fact used by lenders (VantageScore being the prime example with 4-6% marketshare in lending decisions). Knowing your FICO scores is important when you’re about to apply for a big loan (e.g mortgage or auto loan) as it’ll affect whether you’re approved or denied and also the terms (i.e APRs) you’re offered.

[Read: How To Find Out Your FICO Score For Free]

Knowing your FAKO score can be useful to see if your overall credit health is improving or declining. It’s never worth paying for a FAKO score, but there is nothing wrong with sign up for one of the free credit monitoring sites such as: Quizzle, Credit Sesame or Credit Karma. It’s always important to remember that this is unlikely to be the same score a lender sees when they look at your credit application.

Do you have any questions about the differences between the two? Ask us in the comments.

One Response to FICO Score Vs FAKO Score: What’s The Difference?

  1. Pingback: Strengthen your Credit with an Installment Loan using the Secured Loan Technique - Doctor Of Credit

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