Whats the difference between a FICO score and a credit rating

Question

Whats the difference between a FICO score and a credit rating

Answer 1

I disagree.

Anyone can have a great credit score and still not be able to qualify for a loan because their score is based on a credit card paid fifteen times and a couple of student loans.

This is whats called a thin file and while it generates a great score it doe's not show the ability of willingness to actually pay anyone.

People need several trade lines both revolving and installment with good long pay history's to have both a great score and profile.

It's the combination of both that generates your rating.

Answer 2

FICO (Fair Isaacs Company) invented the credit score algorithm. Credit Reporting Companies (Experian, Equifax and Trans Union) use variations of that algorithm based on what information is given to them by creditors.

Not everyone reports to all three companies so your credit information could (and probably is) different; therefore, your credit score (rating) is different.

Answer 3

FICO is the official score and other companies only create a credit rating and may not be accurate. Always use one of the top three credit reporting agencies when looking at your credit report and FICO score.

Do not go through a site that you have to sign up for a fee service to get your credit score or report. It's not official and you can get the scorefor a minimal fee per credit agency. For your report you can get all three credit reports once per year for free at annualcreditreport.com.

Answer 4

There is no difference.  The FICO score is the most used credit rating in the United States...