What are the different versions of FICO® scores?
Quick insights
- Lenders may use different FICO® versions depending on the type of loan or financial product.
- FICO® 8 is widely used among many lenders to evaluate applicants for credit cards and personal loans.
- Newer FICO versions may treat medical debt or unpaid collections more leniently.
Many lenders use FICO scores to help predict how likely you are to repay. You might be surprised to learn that you don't have just one FICO credit score, but many versions that help assess your creditworthiness. Let's explore why you have more than one FICO score and how different versions may impact your ability to qualify for loans or credit cards.
Major FICO versions and how they differ
FICO, which stands for the Fair Isaac Corporation, releases new versions of its "base" scores every few years. These base scores are designed to predict general credit risk across different types of lending. While newer versions are available, many lenders continue to use older versions that have proven reliable over time.
- FICO 8: This version is widely used by lenders for credit cards and personal loans. It's designed to emphasize credit utilization ratio, which is the amount of credit you use against your total available credit.
- FICO Score 9: This update changed how certain information impacts your score. It’s tailored to give less weight to medical collections compared to other types of debt.
- FICO Score 10 and 10T: These are some of the most recent versions. FICO Score 10T uses trended credit bureau data, which looks at your account balances over a historical period to see if they're rising or falling.
Industry-specific models
Beyond the base scores, FICO offers versions tailored to specific industries like auto or credit card companies. These models start with the base FICO score but often add extra weight to behaviors that are most relevant to that specific type of loan.
- FICO Auto Scores: These versions are intended to predict the likelihood that you'll repay an auto loan. If you have a consistent history of making car payments on time, your FICO Auto Score might be higher than your base score.
- FICO Bankcard Scores: These models may be used by credit card issuers. They place more emphasis on how you manage revolving credit lines and your history of making credit card payments.
- Mortgage versions: Mortgage lenders typically use older versions of the FICO score. Specifically, they'll often look at FICO Score 2, 4, or 5 depending on which credit bureau is providing the report.
How newer data affects your score
As the financial landscape evolves, FICO's adapted how it treats newer types of data. Newer versions like FICO Score 9 and 10 are designed to provide a more nuanced view of your financial profile by changing how they account for specific types of debt.
- Medical collections: Newer models like FICO 9 treat unpaid medical bills differently than other types of debt. This change recognizes that medical debt is often unplanned and may not accurately reflect a person's general credit risk.
- Trended data: Traditional scores often focus on your most recently reported balance. FICO Score 10T assesses your habits over time, which may help borrowers who are consistently paying down their debt rather than just making minimum payments.
- Buy Now, Pay Later (BNPL): While BNPL loans are a newer way to pay, they may begin to appear on credit reports. Newer FICO versions are built to incorporate these types of accounts as more data becomes available to the credit bureaus.
How to prepare across all versions
While you may not know exactly which version a lender will use, the core habits that help raise your score remain the same across all models. Focusing on these foundational behaviors may help you maintain a healthy credit profile no matter which version is checked.
- Payment history: Payment history is a heavily-weighted factor in credit scoring and tracks things like on-time payments, late or missed payments, defaults, collections and bankruptcies.
- Credit utilization: Keeping your credit card balances low compared to your limits can be useful. A credit utilization ratio of 30% or below is generally considered favorable in both older and newer FICO models.
- Regular monitoring: Using tools like Chase Credit Journey® may help you stay on top of your credit with scores and personalized improvement plans provided by Experian™. While Credit Journey® uses the VantageScore® 3.0 model rather than FICO, it may be a helpful resource since both models rely on much of the same underlying data. Monitoring your credit score may help you understand your progress and be proactive in fixing any issues.
In summary
Knowing why your scores might vary may help you navigate the lending process. Since FICO 8 remains the standard for many lenders, it may be a good choice to monitor this version as you build your credit. While scoring models may vary by lender, sticking to positive habits like managing debt and tracking your progress may help you build a credit profile that is viewed favorably across different versions.
