FICO Score vs. Credit Score: What’s the Difference?

When it comes to credit, the terms “credit score” and “FICO^® score” are sometimes used interchangeably. However, these terms aren’t always the same. Understanding the differences may give you the context you need to start building your credit and start reaping the benefits of stronger credit.

Let’s explore what credit scores and FICO scores are, how they differ, how credit scores are calculated and tips for managing your credit score.

Understanding FICO scores and credit score

There is an overlap between a FICO score and a credit score, but they are not exactly the same.

Credit score

A credit score is a 3-digit number that represents your creditworthiness. These numbers are based on data in your credit report, such as your payment history and amount of debt, as reported by the 3 major credit bureaus. Lenders use credit scores to help them assess risk when you apply for credit, such as a personal loan. In general, a higher credit score may indicate to lenders that you’re more likely to pay back a debt.

The term “credit score” may refer to several different credit scoring models, so you may have multiple credit scores.

FICO score

A FICO score is a type of credit score developed by the Fair Isaac Corporation. While this is a commonly used score when it comes to lending decisions, your FICO score is not the only credit score you have.

You may also have multiple FICO scores because there are multiple iterations of this credit score used for different purposes. For example, there are versions designed specifically for home and car loans.

FICO score vs. credit score: key differences

There are key differences between a FICO score and other credit scores, such as:

Scoring model

In general, credit scores may use 1 of many credit scoring models to calculate your credit score. FICO scores specifically use the FICO scoring model, which includes different versions. VantageScore^® is another common credit scoring model.

Usage

FICO scores are widely used in lending decisions, though some lenders may use other credit scoring models.

Scoring range

Typically, credit scores, including FICO scores, range anywhere from 300 to 850. However, these ranges may vary slightly depending on the model.

Calculation factors

FICO scores and other types of credit scores generally use similar factors in their calculations. Those may include:

• Payment history
• Amounts owed
• Length of credit history
• Credit mix
• New credit

However, the importance of each factor changes depending on the scoring model. For example, new credit is more heavily weighted for FICO scores compared to VantageScores.

Which score do lenders use?

Each lender may select the credit score they will consider while evaluating loan or credit applications. That said, many lenders use FICO scores. The credit score version they consider may also depend on the type of loan you’re applying for.

Why you might see different credit scores

There are several reasons why you might see variations across your credit scores.

First, each credit scoring model calculates scores differently, which may mean you see different figures depending on which model is used.

Second, credit scores may rely on information from different credit reports. You can get a FICO score from each credit bureau, which may have access to slightly different information. Some creditors, for example, may only report information to 1 of the 3 major credit bureaus.

Third, the timing of when you check your credit score may also impact what number you find. For instance, you may not see a newly paid-off credit card reflected in your credit score right away.

Tips for monitoring and managing your credit score

Monitoring your credit score can help you track your progress toward financial goals, like paying off debt, and understand your credit options. Many credit cards come with free access to your credit score, including select Citi^® credit cards.

You may also check your credit report online for free each week with each of the 3 major credit bureaus. This can help you understand what lenders might see if they check your credit. If you see any errors, you can dispute them with both the relevant credit bureaus and the lender who reported that information.

If you’re looking to boost your credit score, here are a few things you can do:

• Pay bills on time: This is often a major credit score factor (and it accounts a significant portion of your FICO credit score). You may want to set up autopay for your bills to help you build and maintain an on-time payment history.
• Pay down credit card debt: Your credit utilization (the amount of debt you carry on revolving credit compared to your total credit limit) also affects your credit score. It contributes to amounts owed, which is another key FICO score factor. In general, the lower your utilization, the better it is for your credit score.
• Keep old accounts open: Credit scores factor in your general age of accounts. Keeping your oldest accounts open can help extend your credit history, which is another key component of your credit score.

Credit scores, including FICO scores, are an important part of your financial life. They may help you qualify for and save money on loans and even access better housing options. Once you understand how credit scores work, you can start taking steps to improve your financial situation.

Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.

FICO is a registered trademark of Fair Isaac Corporation in the United States and other countries. Citi and Fair Isaac are not credit repair organizations as defined under federal or state law, including the Credit Repair Organizations Act. Citi and Fair Isaac do not provide ‘credit repair’ services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history or credit rating.