If you have ever applied for a mortgage, auto loan, or credit card, you are likely aware of your FICO score. You likely have quite a few. This is so that lenders can use various versions of your FICO score based on other factors and the type of credit you need. Heres a quick guide to the various FICO scores and which lenders use which ones.
Greetings, fans of credit scores! Are you interested in learning which lenders are utilizing the newest and greatest FICO score—the FICO 9? If so, get ready to explore the world of credit scores and find out who is embracing this new scoring model.
First things first, what exactly is FICO 9? It’s the newest version of the FICO score, boasting some pretty cool improvements over its predecessors. FICO 9 is more forgiving of medical debt, considers additional data points like rent payments, and offers a more accurate picture of your creditworthiness.
So, who’s using this shiny new score? Well, the answer isn’t as simple as a yes or no. It depends on the type of credit you’re seeking. Let’s break it down:
Mortgages: The mortgage industry is a bit of a slowpoke when it comes to adopting new technologies. Currently, they’re still using FICO scores 2 4 and 5. However, there’s a glimmer of hope! Fannie Mae and Freddie Mac, the two giants of the mortgage world, have expressed interest in transitioning to FICO 9 in the future.
Auto Loans: The auto loan industry is a bit more progressive. Many lenders are already using FICO Scores 8 and 9, along with the older versions 2, 4, and 5. This means you have a good chance of your FICO 9 score being considered when you apply for a car loan.
Credit Cards: Credit card issuers are the early adopters of the bunch. When you apply for a new credit card, you have the best chance of having your FICO 9 score used because they are using FICO Scores 2, 4, 5, 8, and 9.
But wait there’s more! Different lenders might use different versions of FICO scores depending on their own internal policies and risk assessment models. So, even if a lender is generally known to use FICO 9, it’s always best to check with them directly to be sure.
Now, let’s address the elephant in the room: why should you care about FICO 9? Well, if you have medical debt or a thin credit history, FICO 9 could be your saving grace. It’s more likely to give you a higher score than older versions, which could translate to better interest rates and loan terms.
So there you have it! A comprehensive guide to FICO 9 and who’s using it. Remember, the landscape is constantly changing so stay informed and keep an eye out for updates. And hey, if you’re looking to boost your FICO 9 score, check out our awesome tips and tricks!
Car Loans
Even though FICO has developed a number of auto-specific scores, auto loans still frequently use the base FICO 8 and 9 scores. Here are the various FICO auto scores available, as well as which ones credit bureaus tend to use:
- 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
Which Lenders Use Which FICO Scores?
Lenders typically have the option of selecting which FICO score to use when doing a credit check, with the exception of the highly regulated mortgage market. They use versions depending on the kind of credit for which you apply. Heres a look at the most common FICO scores for each type of credit.
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FAQ
Does anyone use FICO 9?
Do banks use FICO 8 or 9?
Why is FICO 9 so much lower?
Is FICO score 9 better than 8?
What is FICO score 9?
FICO Score 9 is the second-latest version of the well-known credit scoring model, but it still isn’t being used as widely as its predecessor, the FICO 8. All credit scores come from data in your credit reports, weighed according to proprietary formulas that calculate a score, typically on a 300-850 scale.
What is FICO 9?
FICO 9 is an updated FICO credit scoring model that was introduced to lenders in 2014 and consumers in 2016. Key changes in FICO 9 center on how collection accounts, paid and unpaid, factor into your credit score calculations. Another change is that renters can now use rent payments to build credit history under the FICO 9 model.
What is the difference between FICO 8 and FICO 9?
FICO 9 differs from previous versions of the FICO credit score primarily in its treatment of medical and other collection accounts. Though the FICO 9 credit score is accessible to both lenders and consumers, as of the end of 2020, it still isn’t as widely used as FICO 8.
Do lenders still use FICO® score 9?
Even though FICO® Score 9 was officially launched to lenders in 2014, most lenders still use FICO® Score 8. Lenders get to decide on which version they use in their lending decisions, and FICO® Score 9 is only gradually being adopted. Over time, consumers might see slight differences in their FICO® Score 9 credit scores.