Understanding your FICO and CreditWise Credit Scores (2024)

FAQs

Is FICO score or CreditWise more accurate? ›

There isn't one credit score that's necessarily more accurate than another. Your credit scores depend on the information from lenders and creditors in your credit reports. But different credit-scoring models may take different factors into account or weigh certain factors more heavily than others.

The score provided in the CreditWise tool is calculated using the TransUnion® VantageScore® 3.0 model, which is one of many scoring models. Your CreditWise score is a good measure of your overall credit health, but it is not likely to be the same score used by creditors.

"For years, there has been a lot of confusion among consumers over which credit scores matter. While there are many types of credit scores, FICO Scores matter the most because the majority of lenders use these scores to decide whether to approve loan applicants and at what interest rates."

This happens when the credit bureaus all have different information recorded for you. For instance, two of the credit bureaus may have captured information for certain credit accounts and the other one did not record the same information. In that case, your FICO scores for all three bureaus will likely be different.

Simply put, there is no “more accurate” score when it comes down to receiving your score from the major credit bureaus.

The CreditWise score is calculated using the TransUnion® VantageScore® 3.0 model. So, it will be pretty close to your VantageScore credit score through TransUnion. However, the score reflected on CreditWise may not be the same as what you get from your TransUnion credit report.

Lenders use both Vantage Score and FICO Score to determine whether someone is likely to repay a loan or credit card balance on time and to what extent they are a credit risk.

Basically, "credit score" and "FICO score" are all referring to the same thing. A FICO score is a type of credit scoring model. While different reporting agencies may weigh factors slightly differently, they are all essentially measuring the same thing.

Your FICO Score is a credit score. But if your FICO score is different from another of your credit scores, it may be that the score you're viewing was calculated using one of the other scoring models that exist.

What is an excellent FICO score? ›

The company uses several different formulas to calculate credit scores—including VantageScore 3.0 and VantageScore 4.0.

CreditWise uses the TransUnion VantageScore 3.0 credit scoring model, which is different from the FICO Score used by the majority of lenders. Your CreditWise score is based on the information gathered from TransUnion, one of the three major credit bureaus.

The minimum credit score needed for most mortgages is typically around 620. However, government-backed mortgages like Federal Housing Administration (FHA) loans typically have lower credit requirements than conventional fixed-rate loans and adjustable-rate mortgages (ARMs).

For a score with a range between 300 and 850, a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent. Most consumers have credit scores that fall between 600 and 750.

Which of the 3 Credit Bureaus Is the Best? Of the three main credit bureaus (Equifax, Experian, and TransUnion), none is considered better than the others. A lender may rely on a report from one bureau or all three bureaus to make its decisions about approving a loan.

You can start by going to the three major credit bureaus, Equifax, Experian, and TransUnion first by logging on to AnnualCreditReport.com to check your report for free. Each agency gives you access to your report once every 12 months.

Also, as the official consumer division of FICO, myFICO uses the industry standard credit scores, which are the most accurate way of tracking your current credit status.