How Many Credit Scores Are There and What Do They Mean

There are three major credit scores used by lenders to evaluate your creditworthiness. The most well-known is the FICO score, which is calculated based on your payment history, credit utilization, length of credit history, and other factors.

The FICO score ranges from 300 to 850, with higher scores indicating better credit health. A good FICO score is typically considered to be 700 or higher.

In addition to the FICO score, there are two other credit scores used by lenders: the VantageScore and the TransRisk score.

Suggestion: How Do Lenders Use Credit Scores

Credit scores are three-digit numbers that help lenders judge the risk that you won't repay a loan. They're often used to determine whether you're eligible for additional financial products or lower interest rates.

A higher credit score makes you look more attractive to lenders, which can be a big plus. I've seen friends get approved for rewards credit cards or unsecured personal loans with good credit.

Take a look at this: What Credit Scores Do Mortgage Lenders Use

FICO creates many credit scores, including the popular FICO Scores used by 90% of top lenders. There are actually many versions of the FICO Score because FICO regularly develops new scoring models.

The base FICO Scores, such as FICO Score 8, FICO Score 9, and FICO Score 10, range from 300 to 850. These scores predict late payments on any type of credit obligation.

Industry-specific FICO Scores, like FICO Auto Score 10 and FICO Bankcard 10, have larger ranges for poor and exceptional credit. They're designed to better predict risk for specific types of lenders.

Here are the main types of FICO Scores:

FICO breaks down the score range into smaller ranges to indicate creditworthiness. The higher your score, the more attractive you look to lenders.

There are numerous credit scores, and the exact number is hard to pin down. The FICO website doesn't provide an official count, but some sources suggest that a consumer can have as many as 28 FICO Scores.

Lenders use different scoring models, and each version weighs credit factors differently. This means that even if you have the same credit information, you could have different scores based on the model used.

The FICO scoring models are customized for each credit bureau, which means that even with identical information, you could end up with different scores from each bureau. This could lead to over 50 different credit scores, considering the three major credit bureaus and the various scoring models used by each.

Here's a breakdown of the different FICO scores used by each credit bureau for mortgages:

You might be surprised to learn that your credit score can vary based on each of your three credit reports. This is because creditors can choose which bureau(s) they want to report to, as well as what they report and when.

Each of the three major credit bureaus, Equifax, Experian, and TransUnion, can have slightly different information, which can lead to different credit scores.

The FICO scoring model customizes the scoring system for each bureau, so even if the information is identical, you could wind up with different scores.

This means you could have three different FICO scores, one for each credit report, which is just the beginning of the story.

In fact, with FICO alone, you have over 50 different credit scores, thanks to the various scoring models and credit reports.

Here's a breakdown of the different FICO scores you might have, based on each credit report:

As you can see, the different scoring models and credit reports can lead to a wide range of credit scores.

FICO has a base scoring model, the FICO Score, as well as industry-specific scores. There's a FICO Bankcard Score for credit card issuers and FICO Auto Score for auto lenders.

The industry-specific scores rely on the same fundamental scoring criteria, but your history with a credit card or auto loan will have a greater impact on the score. This means you may have a different credit score for a credit card than for a mortgage.

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FICO base scores go from 300 to 850, while the industry-specific scores have a 250 to 900 range. Higher is still better, even in the industry-specific scores.

TransUnion also offers its own variation on the credit score, with five different versions available to consumers and lenders. These include the FICO Risk Score, Classic 08, and the FICO Risk Score Next Gen.

Suggestion: Scoring Credit Risk

You might see different credit scores when you check your credit or get a letter from a creditor for several reasons. There are actually many versions of the FICO Score, which is used by 90% of top lenders.

FICO creates new scoring models that incorporate new technology, new data and changing consumer behavior, resulting in different credit scores. This means you might see different scores from different creditors or credit bureaus.

The various FICO Scores fall into three groups: Base FICO Scores, Industry-specific FICO Scores, and FICO Scores that use alternative data. These groups include different types of scores that are designed to predict risk for different types of credit obligations.

For your interest: What Are the 3 Types of Credit Scores

Here are the different types of FICO Scores:

The different credit scores also have different ranges, with the base and alternative data FICO Scores ranging from 300 to 850, and the industry-specific scores ranging from 250 to 900.

There are many different credit scoring models out there. FICO, the most popular credit scoring model, has modified its scoring model numerous times since its debut in 1989.

Each version of the FICO score weighs credit factors differently and incorporates different prediction methodology, producing different FICO scores. FICO has a total of 28 scoring models, but the website doesn't provide an official count.

Creditors and credit score checking programs can choose from dozens of different credit scores. Even if scoring models have the same score range, differences in what the scores consider can lead to different outcomes.

Here are some examples of different FICO scoring models used by lenders:

FICO doesn't use the same algorithm it did 20 years ago, and it changes the calculations and tries to improve its ability to predict risk. The latest base FICO scoring model, FICO Score 9, was introduced in August 2014 and treats medical debt and paid collection accounts differently than the previous version.

There are also several versions of the FICO industry-specific scores, and VantageScore is currently on version 3.0, released in March 2013. The various FICO Scores fall into three groups: Base FICO Scores, Industry-specific FICO Scores, and FICO Scores that use alternative data.

FICO creates many data analytics products for companies, including the popular FICO Scores that are used by 90% of top lenders.

Your credit reports from Experian, TransUnion, and Equifax can have different information because creditors can choose which bureau(s) they want to report to.

This means that the same scoring model can give you different credit scores based on each of your three credit reports. For example, your FICO Score 8 based on Experian data likely differs from your VantageScore 3.0 based on TransUnion data.

Consider reading: Transunion Credit Scoring

Your credit reports from different bureaus can have varying information, making it possible to have different credit scores based on each report. This is because creditors can choose which bureau(s) they want to report to, as well as what they report and when.

Creditors can report to one, two, or all three of the major credit bureaus: Experian, TransUnion, and Equifax. This means you might have different information on each report.

The same scoring model can give you different credit scores based on each of your three credit reports. For example, your FICO Score 8 based on Experian data likely differs from your VantageScore 3.0 based on TransUnion data.

If this caught your attention, see: Why Is Credit Karma and Experian Scores Different

The history of credit reports is a fascinating story that dates back to the turn of the 20th century. Before credit scores were developed, merchant associates kept notes on someone's ability to repay debt.

People would often ask for credit from stores directly, and buying groceries "on credit" was a common practice. You might remember hearing about this from your grandparents or parents.

Over time, credit-reporting groups grew, consolidated, and formed national credit bureaus. Today, there are hundreds of consumer credit reporting companies, although many are small or service specific industries.

The three largest consumer credit bureaus are Equifax, Experian, and TransUnion. They collect payment information on payments to your credit accounts, such as a loan or credit card.

The passing of the Fair Credit Reporting Act in 1970 standardized what can and cannot be in your credit reports. It also limits who can access your credit reports and your right to view a copy of your reports.

The credit bureaus are for-profit competitors and don't readily share information with each other. But, if you submit a fraud alert to one bureau, by law they must forward it to the other two.

Intriguing read: Credit Reports and Scores Answer Key

A good credit score is essential for getting loans and credit at a good interest rate. It's a three-digit number that shows how well you manage your debt and credit.

FICO creates many different versions of the FICO Score because they regularly develop new scoring models that incorporate new technology, new data, and changing consumer behavior. This means there are actually many versions of the FICO Score.

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There are three main groups of FICO Scores: Base FICO Scores, Industry-specific FICO Scores, and FICO Scores that use alternative data. The base FICO Scores include FICO Score 8, FICO Score 9, and FICO Score 10, with FICO Score 10T being similar but considering trends in your credit history.

The FICO Scores range from 300 to 850, with higher scores indicating a higher level of creditworthiness. Industry-specific scores have larger ranges for the poor and exceptional credit ranges.

Here are some examples of FICO Scores used for different types of credit:

The FICO website doesn't provide an official count of how many different scores exist, but some sources suggest that a consumer can have as many as 28 FICO Scores.

There are several special cases when it comes to credit scores. For example, the VantageScore 4.0 model uses a different scoring system for consumers with thin credit files. These consumers are assigned a score between 501 and 600, which is based on their credit history and other factors.

FICO scores are also used for specific industries, such as automotive and mortgage lending. In these cases, lenders use a FICO score range of 250-900 to evaluate creditworthiness.

The VantageScore 4.0 model also considers non-traditional credit data, such as rent payments and utility bills, for some consumers. This can be beneficial for individuals who don't have a traditional credit history.

FICO scores can be affected by medical debt, which is treated differently than other types of debt. Medical debt is given less weight in the scoring model, and it's also subject to a special 180-day waiting period before it's reported to the credit bureaus.

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