FICO Score VS Credit Score

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Credit plays a big role in everyone’s life. But before applying for credit, you should understand the basic aspects of FICO score vs credit score, how credit affects you, and how it functions. Knowing the fundamentals of the FICO score can help you know your loan worthiness.

It also has an impact on your pocket in different ways, you can save a significant amount of money with its help. FICO score can be considered as a parameter to check how you balance your personal and professional budget.

What is a FICO score?

FICO score is a type of Credit score that is used by most lenders. If you want to take a loan, your lender will assess your FICO score to decide your loan worthiness.

FICO was previously known as Fair, Isaac, and company. It is a data analytic company that analyzes your data to make predictions. It can be your credit history or anything that affects your credit score. If you have a positive FICO score then you become eligible for a loan. FICO score also decides how much interest rate you’ll have to pay.


Credit scores are made of three digits. They are measured from 300-850. The more numbers you reach, the better your credit score you have. If you have a credit score of more than 700, then it is a good FICO score.

FICO score vs. credit score: What is the difference

A person can get different types of credit scores. FICO score is among them. There are other credit scores like VantageScore that are assessed by lenders but FICO has dominated the history of Credit scores.

The predictions for your credit scores can vary and depend on the credit score type. Since the credit score companies offer their parameters to analyze your credit history, you can see a different credit score. Your credit score also depends on the type of scoring model and credit report is being used.


The other noticeable difference between your FICO score and credit score is the ability to offer you credit scores. For example, FICO demands one account active for a minimum of six months. However, VantageScore can provide you with a credit score with just one month’s credit history.

Which FICO Scores do lenders ask for?

You should know that FICO scores are referred by most credit providers. There are different types of FICO scores that are analyzed according to your loan or financing type.


The most common version of the FICO score is FICO Score 8. However, nowadays FICO Score 9 is getting popular due to its micro treatment of accounts for medical collection.

Financial benefits of a positive FICO score

A positive credit score is like a blessing in financial emergencies. Having a good FICO score means it will help you in big purchases like home or car.  It can also save you a significant amount of money as you become eligible for a lower interest rate.  You can build a positive credit score over time. To avoid a negative FICO score, you should pay all your payments on time, you should stop inquiring about the credit unnecessarily. You can also try reducing your debt by reducing your debts.


A good FICO score means gaining the trust of lenders. You can also become eligible for any big loan or purchase. However, try to avoid taking unnecessary loans when it comes to credit services. If you do not have a positive FICO score then do not worry. You can improve your credit score with constant healthy transaction practices.


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