FICO Score Facts and Myths

Myths Facts Black n Blue
FICO Facts and Home Loans
What is the difference between FICO Scores and the free credit scores advertised on television? The short answer is mortgage lenders only use FICO Scores to evaluate your credit so the FAKO sites advertised on TV are a waste of both your time and money.

There are three national credit repositories which we know as credit reporting agencies. Trans Union, Equifax and Experian. All are for profit corporations. All have an agenda which is to sell you a subscription to something you truly do not need.

What does FICO stand for? FICO was the publicly known name of the Fair Issac Company which developed the mathematical models to predict credit behavior based on current and past credit usage; they are now known as FICO. This company is as protective of their proprietary information as is Coca Cola of its formula.

You can obtain a free copy of your credit reports annually by logging onto this government created site free annual credit report. While these reports contain the information on your credit reports, they do not contain your FICO Scores. As of this publication, you will need to purchase your FICO  Scores as explained below.

How can I get a copy of my credit report with the FICO Scores? You can get a copy of your FICO Scores with the error codes (very important) from only three places at varying costs – none of the reports with your FICO Scores are free: 1] Your mortgage banker – who may not mark up the price paid for the tri-merged reports with your FICO Scores – is the only one that can get all three of the credit reports with the explanatory codes. 2] My fico again provides all three FICO Scores as of September 2014. The costs are not insignificant and the scores you purchase may not be the ones your mortgage lender utilizes.

Can I get an idea of what my FICO Scores are without spending any money? Yes. But with a word of caution; the FICO simulator will act as any computer program, in other words garbage in garbage out. The free FICO Score Estimator will give you a good idea of your FICO Score Range. I do not encourage you to purchase any of the products offered as you utilize the FICO simulator.

In future articles I plan to discuss: How you can improve your FICO Scores; understanding how your FICO Scores are earned as well consumer credit topics suggested by readers.

Image attribution

Financially SpeakingJames Spray, CNE, FICO Pro 
CO LMO 100008715| NMLS 257365 | May 24, 2010

Notice: The information on this blog is opinion and information. While I have made every effort to link accurate and complete information, I cannot guarantee it is correct. Please seek legal assistance to make certain your legal interpretation and decisions are correct. This information is not legal advice and is for guidance only. You may use this information in whole and not in part providing you give full attribution to James Spray.

2 comments on “FICO Score Facts and Myths

  1. […] proof of the damage that will be done to your credit is easy to earn. Refer to an article I wrote a couple of months ago and refer to the FICO Simulator. Plug in the scenario of 90 days […]


  2. […] reduction results in very harshly reduced FICO Scores. Test this yourself with the FICO score calculator I first posted on May 24, 2010. (Again, mind the cautionary notice posted in the same […]


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