Your Lender May Use a Different Credit Score

Do you know how many credit scores you have? If you answered one, unfortunately, you're wrong. As revealed in FICO vs. FAKO you have quite a few credit scores, each of which could be different. Even the most widely-recognized FICO score has a few different "flavors" and generations, as discussed in a recent SmartMoney.com article, Not All Credit Scores Created Equal.

Depending on the type of credit a consumer seeks — a mortgage, installment loan, auto loan or credit card, for example — lenders will use different "flavors" to determine a consumer's default risk. Auto-loan payments, for example, weigh more heavily in the formula that calculates a FICO score for auto lenders, while credit-card payments matter more to the FICO used by credit-card companies.

The article goes on to say that new generations of FICO scores are released that lenders may or may not decide to use. These different generations and "flavors" of scores aren't available for consumers. So, the credit score you have, whether it's a FICO or FAKO, probably isn't the one the bank is using to approve your application.

Since most lenders use some version of the FICO score, it's best to use that score to gauge your creditworthiness. But, don't be surprised if the lender pulls a score that's different from the one you have.

More on Credit Scores:

• The Credit Score Calculation
• 15 Credit Score Killers
• 10 Things to Improve Your Score Today