Why is my FICO® Score Lower Than my Credit Score?

As is understandable, many people conflate FICO® scores and credit scores as being a measure of the same thing. While this may seem logical on the surface, these two scores are different and have separate meanings. To learn more about the differences between FICO® and credit scores, reach out to a Florida credit report attorney from Sharmin & Sharmin today.

Difference Between a FICO® Score and a VantageScore®

What is oftentimes misunderstood by many consumers is how a FICO® score and a “regular” credit score can be different. In this case, a “regular” credit score refers to a VantageScore®, while FICO® scores refer to the credit score model produced by the Fair Isaac Corporation. As FICO® scores are sometimes the more popular score to reference for creditors, many people become concerned when they learn that it may be lower than their VantageScore®. 

While there are a number of reasons a FICO® score can be lower than a VantageScore®, one of the primary reasons is that FICO® scores range anywhere from 300 – 850 points, while industry-specific standards can range anywhere from 250 – 900 points. With the difference in score ranges, the two credit scores are bound to be different by at least a small amount. Furthermore, VantageScore® uses a number of different credit bureaus to compete with FICO®, each using different algorithms than FICO®, ultimately impacting someone’s score.

The Different Reasons Someone’s FICO® Score Could Be Lower Than a Credit Score

Furthermore, some credit score reports only give loose, more general credit score numbers to people as well. This effectively withholds their true credit scores from them – subsequently impacting the numbers they are comparing and contrasting. A true score may be hidden, only to be seen by creditors themselves. While this is an extremely common practice in the world of credit, it is often frustrating and unpopular with consumers as they are unaware of their true score and suffer financial consequences as a result. 

Finally, there is a potential that credit reporting errors have ruined one, or both, of their scores. In addition to causing concern over the grave difference between someone’s two credit numbers, there is the concern that a low score impacts someone’s ability to engage in financial decision-making. Someone attempting to buy a house or a car would find themself in a position with very high-interest rates or unable to secure a loan at all. 

Sharmin & Sharmin, Here for All of Your Financial Woes

VantageScores and FICO scores are confusing, and simply misunderstanding them can have serious implications for those hoping to exercise their abilities as a consumer to take out loans or lines of credit. 

Florida credit report attorneys from Sharmin & Sharmin understand this confusion as we have been helping clients better understand their scores and clear their credit reports of misrepresentation for years. Give us a call at your earliest convenience at 1-844-Sharmin. Alternatively, you can message us virtually through our online contact form. Our firm offers a number of services, all starting with a free consultation.