The Many Faces of FICO Scores

Having different credit scores can be confusing enough- and even though the FICO score is by far the most commonly used credit score by lenders, did you know that there is more than one FICO score?! 

Classic FICO

The Classic FICO score is the one that is most used by credit granters.  They are calculated using a software program by the Fair Isaac Corporation, and they were first used in 1989.  The FICO score is based only upon credit information that can be viewed in your credit report.  The information is mainly from lenders that have already lent you money- including banks and credit card companies, school loans, automobile loans, etc.  

The score ranges for the Classic FICO are between 300 and 850, with the scores in the higher range indicative of the most creditworthiness.  In the United States, the median FICO credit score for individuals is 723.  Their are 3 credit reporting agencies that issue FICO scores, but they tend to calculate them slightly different and therefore you might have a different score from each of the credit reporting agencies due to the differences in the information found in each of the credit files.  The credit score ranges of Experian FICO scores are between 330 and 830 while TransUnion scores (called the Emperica Model) are between 150 and 934.  Equifax has named their FICO score model the "Beacon".

NextGen FICO

In 1999, another FICO score was created by the Fair Isaac Corporation, called "The NextGen Fico" Score.  It's supposed to be better at determining an individual's creditworthiness than the Classic FICO, and it tends to give more individuals a higher score and allow lenders to lend more money.  Lenders have not yet reported publicly whether or not the NextGen FICO scores are better at predicting credit risks, but the Fair Isaac Corporation insists that the score is a better predicition of bad risks.

Once again, each of the major credit reporting agencies have given the NextGen FICO score a different name.  Equifax calls NextGen "Pinnacle", while TransUnion labeled it the "FICO Risk Score, NextGen", and Experian calls it the "Experian/Fair Isaac Advanced Risk Score."

Expansion FICO

The Expansion FICO score is slightly different from the other versions of FICO credit scores.  Fair Isaac Corporation estimates that nearly a quarter of all adults living within the US (that's about 50,000,000 people), do not have sufficient information that can be used to accurately create a credit score.  Sometimes a credit score cannot be determined because a person doesn't have a credit report yet (a new adult), or someone who was recently divorced or widowed, or immigrants, for example.

The Expansion FICO uses information outside of credit reports in order to calculate a prediction of creditworthiness for the individuals who fall into this category- but because the score is calculated differently from a regular credit score, it got the new name: Expansion FICO.

The Expansion FICO measures the risk of loaning money based on information like pay day loan cashing done by the individual, and deposit account records.  The score will range between 300 and 850, with high numbers indicative of better creditworthiness.  The Expansion FICO attempts to determine whether a consumer will pay more than 90 days after the due date on payments for a period of 2 years after the score is created.