Which FICO Scores Do Lenders Use? (2024)

If you've ever applied for a credit card, mortgage, or car loan, you probably know that you have a FICO score. You likely have quite a few. That's because lenders use different versions of FICO scores depending on the type of credit you need and other issues. Here's a quick guide to the various FICO scores and which lenders use which ones.

Key Takeaways

FICO credit scores are used to evaluate a borrower's creditworthiness.
The FICO scoring methodology has been updated over the years, and lenders use multiple versions.
Industry-specific FICO scores are also available for different types of credit, such as mortgages, car loans, and credit cards.

What Are FICO Scores?

FICO scores are credit scores developed by the Fair Isaac Corporation (now called FICO). Used by more than 90% of major lenders, according to the company, the scores are designed to help assess a borrower's creditworthiness. FICO considers five factors when calculating a score:

Payment History (35%)
Amounts Owed (30%)
Length of Credit History (15%)
New Credit (10%)
Credit Mix (10%)

Why Are There Different FICO Scores?

When you apply for credit, whether it's your first credit card or a second mortgage, lenders need to decide whether you're worth the risk. They check your credit scores or get credit reports from one or more of the three major credit bureaus: Equifax, Experian, and TransUnion.

Multiple versions of FICO scores reflect the evolution of the credit market and consumer behavior since the scores first became a tool for lenders in 1989.

FICO has ten versions of its "base" score, and most of them are still in use by lenders to some extent. Lenders can currently choose from the following base versions:

FICO 2
FICO 3
FICO 4
FICO 5
FICO 8
FICO 9
FICO 10 and 10T

FICO 8 remains the most widely used score, but several lenders have switched to FICO 9, which is more forgiving of unpaid medical bills. The FICO 10 Suite, which lenders could access starting in 2020, was introduced to add more flexibility and predictability to the scoring model, FICO says.

Depending on the type of credit involved, lenders may use one of the various industry-specific scores that FICO has developed. While the base FICO scores look at how likely borrowers are to repay debt, these scores see payment history and risk behaviors that might be more relevant to that specific market. For example, if a borrower has missed payments on a car loan in the past, that could impact their FICO Auto Score.

Which Lenders Use Which FICO Scores?

Except for the mortgage market, which is heavily regulated, lenders can generally choose which FICO score they use when running a credit check. They use versions depending on the kind of credit for which you apply. Here's a look at the most common FICO scores for each type of credit.

Mortgages

When you take out a mortgage, the loan may be bought by Fannie Mae or Freddie Mac. These massive government-backed mortgage companies dictate which FICO scores home lenders can use. Here are the FICO scores offered by the three major credit bureaus for that purpose, along with the alternative names the bureaus use to advertise them:

Equifax: FICO Score 5 (Equifax Beacon 5.0)
Experian: FICO Score 2 (Experian/Fair Isaac Risk Model V2)
TransUnion: FICO Score 4 (TransUnion FICO Risk Score 04)

Important

Upfront fees on Fannie Mae and Freddie Mac home loans changed in May 2023. Fees were increased for homebuyers with higher credit scores, such as 740 or higher, while they were decreased for homebuyers with lower credit scores, such as those below 640. Another change: Your down payment will influence what your fee is. The higher your down payment, the lower your fees, though it will still depend on your credit score. Fannie Mae provides Loan-Level Price Adjustments on its website.

Car Loans

Though FICO has created several auto-specific scores, the base FICO 8 and 9 scores are still widely used in car lending. Here are the various FICO auto scores available, as well as which ones credit bureaus tend to use:

Credit Cards

Just as it has for auto loans, FICO has developed a series of scores attuned to the concerns of credit card issuers. FICO bankcard scores are more sensitive to how a borrower manages credit cards. Here are the available FICO bankcard scores and the credit bureaus that use them:

FICO Bankcard Score 2 (Experian)
FICO Bankcard Score 4 (TransUnion)
FICO Bankcard Score 5 (Equifax)
FICO Bankcard Score 8 (Experian, Equifax, TransUnion)
FICO Bankcard Score 9

What Is an Adverse Action Notice?

By law, a lender who turns you down for credit must explain why in what's known as an adverse action notice in the form of a letter. If your credit score was involved in the decision, the lender must provide the score and the date it was created.

What Is a VantageScore?

VantageScore is a competitor to FICO, created by the three major credit bureaus. It has its scoring system but also expresses scores ranging from 300 to 850. Like FICO scores, VantageScores come in multiple versions. If you request a credit score from a free website or a financial institution, it will often be a VantageScore.

Does Checking Your Credit Score Hurt Your Credit?

No, checking your credit score has no effect on your credit.

The Bottom Line

Unless you're turned down for credit and receive an adverse action notice, you may never know which FICO score a lender has chosen when considering your credit application. Still, regardless of what methodology is applied, the essentials for earning a good score apply:

Make your monthly payments on time
Don't open more credit accounts than you need
Keep debt balances down

You can check your FICO 8 credit score free of charge through FICO. You can access your scores from your bank, credit card company, or an independent website.

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FICO Scores

FICO scores are credit scores developed by the Fair Isaac Corporation (now called FICO). They are widely used by lenders to assess a borrower's creditworthiness FICO considers five factors when calculating a score:

Payment History (35%): This factor looks at whether borrowers have made their payments on time.
Amounts Owed (30%): It considers the amount of debt borrowers have and how much of their available credit they are using.
Length of Credit History (15%): This factor takes into account the age of borrowers' credit accounts and the length of time since their last activity.
New Credit (10%): It looks at the number of recently opened credit accounts and credit inquiries.
Credit Mix (10%): This factor considers the types of credit accounts borrowers have, such as credit cards, mortgages, and loans.

Different versions of FICO scores exist, and lenders may use specific versions depending on the type of credit involved. FICO has ten versions of its "base" score, with FICO 8 being the most widely used. However, some lenders have transitioned to FICO 9, which is more forgiving of unpaid medical bills. The FICO 10 Suite, introduced in 2020, offers more flexibility and predictability to the scoring model .

Industry-Specific FICO Scores

In addition to the base FICO scores, there are industry-specific FICO scores that focus on specific types of credit, such as mortgages, car loans, and credit cards. These scores take into account payment history and risk behaviors that are more relevant to the specific market. For example, the FICO Auto Score considers a borrower's payment history on car loans.

Industry-specific FICO scores have a different range compared to the base versions. Base FICO scores range from 300 to 850, with scores above 670 generally considered "good" credit. On the other hand, industry-specific scores, such as the FICO Bankcard Score for credit cards and the Auto Score for car loans, range from 250 to 900.

Lenders and FICO Scores

Except for the heavily regulated mortgage market, lenders generally have the flexibility to choose which FICO score they use when running a credit check. The specific FICO score used depends on the type of credit for which you are applying.

For mortgages, the FICO scores offered by the three major credit bureaus are as follows:

Equifax: FICO Score 5 (Equifax Beacon 5.0)
Experian: FICO Score 2 (Experian/Fair Isaac Risk Model V2)
TransUnion: FICO Score 4 (TransUnion FICO Risk Score 04)

In car lending, the base FICO 8 and 9 scores are widely used. The various FICO auto scores available are:

FICO Auto Score 2 (Experian)
FICO Auto Score 5 (Equifax)
FICO Auto Score 4 (TransUnion)
FICO Auto Score 8 (Experian, Equifax, TransUnion)
FICO Auto Score 9

For credit cards, FICO has developed a series of scores tailored to the concerns of credit card issuers. The available FICO bankcard scores and the credit bureaus that use them are:

FICO Bankcard Score 2 (Experian)
FICO Bankcard Score 4 (TransUnion)
FICO Bankcard Score 5 (Equifax)
FICO Bankcard Score 8 (Experian, Equifax, TransUnion)
FICO Bankcard Score 9 It's important to note that lenders have the discretion to choose which FICO score they use, so the specific score used may vary.

VantageScore

VantageScore is a competitor to FICO and was created by the three major credit bureaus. Like FICO scores, VantageScores range from 300 to 850 and come in multiple versions. When requesting a credit score from a free website or a financial institution, it is often a VantageScore.

Checking Your Credit Score

Checking your credit score does not have any negative impact on your credit. It is considered a "soft inquiry" and does not affect your creditworthiness.

In summary, FICO scores are widely used by lenders to assess creditworthiness. There are different versions of FICO scores, and lenders may use specific versions depending on the type of credit involved. Industry-specific FICO scores exist for mortgages, car loans, and credit cards. Lenders have the flexibility to choose which FICO score they use, except in the heavily regulated mortgage market. VantageScore is a competitor to FICO and also provides credit scores. Checking your credit score does not harm your credit.