FICO vs. FAKO: Free Credit Scores Have Some Limitations

The credit scores you can get for free aren't usually the same FICO scores that lenders pull when you apply for credit. The free scores, derisively known as "FAKO" scores, are sometimes called "equivalency scores" or "educational scores." It's important to understand the differences between the free scores you can get from websites and the credit scores that most lenders use. 

Your Credit Scores Can Be Different

The free credit scores are real but they may only give you a general idea of where you stand in terms of creditworthiness. 

Your FICO scores with each of Equifax, Experian, and TransUnion, the three major credit scoring companies, are usually different. That's due in part to the fact that your creditors can choose whether to report to one, two, or all three of the major credit bureaus or they can choose not to report at all.

The credit scoring systems also weigh the data in your credit reports somewhat differently, although FICO says that this results in only minor variations. A lender might pull your scores from all three credit bureaus or it might just pull one. Fico says that most mortgage lenders like to look at all three. You aren't seeing the whole picture when you only know your score from a single source.

Different types of lenders may request different versions of your FICO scores. The FICO Score 8 and FICO Score 9 are the most widely used today but there are also more specialized versions for auto lenders, mortgage companies, and credit card issuers.

Some Lenders Use VantageScore, Not FICO

Not all credit scores are FICO scores. The VantageScore is a scoring model created by a collaboration among the three major credit bureaus. It's not as widely used as the FICO score but it has caught on among free credit score providers.

The latest version, VantageScore 4.0, and its predecessor, VantageScore 3.0, score consumers using a range from 300 to 850, just as a FICO score does. Some earlier VantageScores used a 501 to 990 range. However, VantageScore assigns different weights to the five factors that determine your credit score in contrast with traditional FICO scores.

VantageScore is also more forgiving to individuals with shorter credit histories. The company claims it can generate scores for 37 million people who previously didn't qualify for a FICO score. Individuals must have at least one credit account that's been open for no less than six months to receive a FICO score, according to Experian. An account that's been open for at least one month and has been reported to the credit bureaus can be sufficient for calculating a VantageScore.

Just as each of the three major credit bureaus issues its own FICO score based on the consumer's information with that bureau, each also issues its own VantageScore as well. A VantageScore from TransUnion will be the same as a VantageScore from Equifax if both TransUnion and Equifax have identical information on a consumer.

There are often differences in the information reported to each bureau, however, so consumers can still have somewhat different VantageScores just as they can have different FICO scores.

How VantageScore and FICO Determine Your Score

VantageScore and FICO assign different weights to the factors that determine your credit score.

VantageScore 3.0

• Payment history (40%)
• Depth of credit (21%)
• Credit utilization (20%)
• Credit balances (11%)
• Recent credit (5%)
• Available credit (3%)

VantageScore 4.0 adjusts several of those percentages very slightly.

FICO Score

• Payment history (35%)
• Amounts owed (30%)
• Length of credit history (15%)
• New credit (10%)
• Credit mix (10%)

How to Get a Free Vantage Score

VantageScore 4.0 was introduced in 2017, but VantageScore 3.0 remains in wide use. It's likely to be a VantageScore 3.0 if you get a free credit score from any of the following online providers. This is not a complete list:

• Credit.com
• CreditKarma.com
• CreditSesame.com
• CreditWise.com
• LendingTree.com
• Mint.Intuit.com
• NerdWallet.com
• WalletHub.com

How to Get a Free FICO Score

You can obtain a free FICO 8 score directly from FICO. Many credit card issuers also offer free FICO credit scores to some or all of their customers, including:

• Ally Bank (auto loan customers only)
• Bank of America
• Barclays
• Citi
• Commerce Bank
• Discover
• First National Bank of Omaha
• Wells Fargo

Again, this is not a complete list.

The Bottom Line

It's important to understand the limitations of what you're getting with any free credit score. The score you see might not be the same one a lender or other creditor will use when deciding whether to take you on as a customer. The best type of free credit score to get is generally an actual FICO score because that's the score the vast majority of lenders use.