Fico credit score or Fako score to use?

We have been aware about Fico score the credit score developed and administered by a company Fair Isaac. Most of lenders and creditors use Fico score to decide whether to give you credit or not. With Fico score, there is one more credit score that is Fako score heard about quite often. We need to know what these credit scores are actually and which one is best and right for us to go for.

Let’s discuss it. Credit score is a generic term that is used to refer to numeric value given to your credit history. Our credit score is calculated on the basis of information available in our credit report.

There are many companies in the market today that sell credit score. All of three major credit reporting agencies Equifax, Experian and TransUnion have their own version of credit score. Exuifax has created Plus, Experian Beacon and TransUnion has developed Empirica.

Fako score is the term used for a score that is not Fico score. Fako score is that we obtain from individual credit reporting agencies Equifax, Experian and TransUnion. If you have purchased your credit score from anywhere but myfico.com, then that score is Fako and not Fico. Fako score is hardly used in credit industry and that’s why people call them Fako score – fake score.

Both Fico and Fako use inquiries from your credit report to calculate your credit score. Fico uses the inquiries made in the past year and Fako uses the inquiries that are made in the past 2 years.

All of creditors and lenders use credit score from companies they have business relationship. It can be credit bureau’s credit score or fico score or lenders own credit score. If you are aiming at improving your credit score then use Fico as your basis. If you are able to improve your fico credit score, all of other credit score will also automatically improve.

It is always a good idea to check credit report before applying for new line of credit. Fako scores are useless and Fico score will only give the true picture of your credit score.