The Difference Between Credit Score and FICO Score

Credit Score

A credit score is a numerical representation that lenders use to determine a borrower’s creditworthiness. Credit scores are calculated based on the credit history of an individual, including past credit accounts and payments, current credit accounts and payments, and outstanding debts.

There are three major credit bureaus in the United States – Equifax, Experian, and TransUnion – that calculate credit scores using different formulas. However, the most common credit scoring model is the FICO score.

FICO Score

The FICO score is the most widely used credit scoring model in the United States. The FICO score ranges from 300 to 850, with higher scores indicating better creditworthiness. The FICO score is calculated based on five main components, including payment history, amounts owed, length of credit history, new credit, and types of credit used.

While the FICO score is the most popular credit scoring model, there are also other types of credit scores, including VantageScore and CreditXpert.

The Difference

The main difference between credit score and FICO score is that credit scores can be calculated using different formulas by different credit bureaus, while the FICO score is a specific type of credit score developed by Fair Isaac Corporation.

Another difference is that credit scores are used for different purposes, such as insurance rates, rental applications, and employment background checks, while FICO scores are primarily used by lenders to determine creditworthiness for loans and credit cards.

In summary, both credit score and FICO score are important in determining creditworthiness, but the FICO score is the most widely used and recognized credit scoring model in the United States.

Table difference between credit score and fico score

Difference between Credit Score and FICO Score

Parameters	Credit Score	FICO Score
Definition	A credit score is a numerical representation of a person’s creditworthiness based on their credit history.	FICO (Fair Isaac Corporation) score is a type of credit score created by the Fair Isaac Corporation, which is widely used by lenders.
Calculation	Calculated by credit bureaus such as Equifax, Experian, and TransUnion using their own unique algorithms.	Calculated by the Fair Isaac Corporation using their own unique algorithm.
Range	The credit score range varies depending on the credit bureau, but generally falls between 300 and 850.	The FICO score range also falls between 300 and 850.
Usage	Credit scores can be used by different types of lenders or creditors, including credit card companies, banks, and other financial institutions.	FICO Score is only used by lenders and financial institutions.
Components	Credit scores are based on various components of credit history such as payment history, credit utilization, length of credit history, new credit accounts, and types of credit accounts.	FICO Scores are also based on payment history, credit utilization, length of credit history, new credit accounts, and types of credit accounts, but the weightage of these components may vary.