Fico vs. Fako – Credit Tips

“What is my real credit score? Really!”

10.24.2014 Key Credit Repair

This is a very common subject we cover and one of the most confusing thing in the credit industry. What are my real scores? How are they really calculated? Well, let me tell you. It’s more complicated then you might think. With the introduction of the Vantage score by transunion and the credit plus score by experian it just become a little bit more complicated.

Client: “I pulled my credit report online and the score my loan officer pulled up was completely different?”

Yes, there are multiple credit scoring formulas. The industry standard remains FICO but consumers are no longer given access to all 3 FICO scores (experian, equifax & transunion).

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Remember, if you are in the market for a mortgage or any other loan product you can always review the details of your report by going to but remember, only your lender can access all 3 fico scores. Start the process early so if you find that your FICO scores are too low you can quickly work on getting things up to par. It is truly never too early. The process of purchasing a home could take months and in some cases years. It is much better to be prepared early then trying to scramble to fix your credit after you’ve found a home.

Understanding FICO Scores For a Mortgage

Obtain a mortgage loan and you’ll soon come to be familiar with FICO scores. Below you will find a guide on the infamous FICO racking up procedure. This  is the primary scoring formula used by fannie and freddie mac, the goverment agencies that insure and underwrite 80% of the mortgages in the United States.

FICO ratings are simply an algebraic portrayal of your credit document. Credit rating documents are just a recording of your possessions and financial obligations. Credit card equilibriums, for example, are a financial obligation that shows up on your credit history record, as do late repayments, bounced checks and more. Credit, obviously, is a substantial consideration in the mortgage loan process.

A “credit score” is a figure that stands for an overall evaluation of exactly how you handle credit rating and also the danger degree associated with offering you a lot more credit rating, to wit, a home loan. The funding underwriter will evaluate your credit rating guide for products such as settlement record on financial obligations, financial obligation balances and also sorts of credit rating you currently have. A summary of this information is stood for by an amount called you “FICO score.”.


You may be shocked to discover that “FICO” does not mean any credit-related terms. Rather, it represents Exhibition, Isaac and Company. This company produced the algebraic formula that creates the much loved or disliked FICO credit scores. The FICO rating assigned to you determines whether you love or hate the formula.

FICO credit scores been available in a variety of three figure numbers. The most affordable FICO credit score you can get is 350. The highest FICO score is 850, a score for which lenders will bow at your feet. The higher your score, the much better your credit situation and the most likely a banking is to supply you with a mortgage loan.

Lots of people do not have excellent credit. To this end, we discover lots of people have FICO scores varying from the low 600s to the high 700s. Mortgage applications typically are not turned down due to a couple of late repayments.

You should always attempt to pre-qualify for a mortgage financing if you’re considering purchasing a residence. Getting a reading of your FICO credit score should be among the initial steps.

FICO credit scores are merely an algebraic portrayal of your credit rating record. The FICO score designated to you establishes whether you despise the formula or enjoy.

The greatest FICO credit score is 850, a score for which bankers will bow at your feet. To this end, we find many individuals have FICO scores ranging from the low 600s to the high 700s.

For more information and a breakdown of how FICO scores work and how they can affect your mortgage approval you can contact our office or Sign Up for $0 Today at a later time.

Nikitas Tsoukalis, President

Key Credit Repair

Credit Repair Company