Consumers mistakenly believe non-FICO credit scores are actually FICO Scores

Consumers mistakenly believe non-FICO credit scores are actually FICO Scores

According to a survey commissioned by FICO, 62 % of consumers who received non-FICO credit scores online believe they had received actual FICO® Scores. More than 8 in 10 consumers believe the scores they obtained from the non-FICO sources are scores widely used by lenders to make credit decisions, which is not the case.

The survey found that 71% of consumers agree it is important that the credit scores they obtain are scores widely used by lenders to make credit decisions. But the only scores used in 90% of credit decisions is the FICO® score.“Because other credit scores look similar to FICO Scores, consumers have no way of determining, through the credit score itself, whether or not it’s a FICO Score. Credit scores are unlike other products; the consequences of not recognizing credit scores from different companies can be much more serious,” according to Jim Wehmann, executive vice president for scores at FICO. “The new research findings bring to light an important issue: If the majority of consumers are confused about these non-FICO credit scores being provided to them, then millions of Americans are mistaken about their actual creditworthiness.”

The scores for the same person vary by as much as 100 points because the mathematical formulas used by the scoring companies are significantly different from their FICO Scores. These large differences cause confusion and without an accurate impression of how a lender views his or her credit risk, a consumer may forego a valuable mortgage refinancing, for example.“ For more about FICO Scores, go to www.ficoscore.com. Consumers may get their true FICO scores by accessing FICO’s Score Open Access Program.

REQUEST A FREE CONSULTATION


  • 1736 Stockton Street
    Ground Floor
    San Fransisco, CA 94133
  • (415) 651-1951