The Credit Score Illusion
Have you ever checked your credit score on a site like Credit Karma or through your credit card company and thought, "Okay, that's my credit score"? You're not alone! Many people believe they have just one credit score, but that's a myth. These services often say they're giving you "your credit score," making it sound like there's only one. But the truth is, you have many different credit scores.
The Many Faces of Your Credit
So, how many credit scores do you actually have? It's a lot! There are currently 40 different versions of the FICO score alone. FICO is the most popular credit scoring model used by lenders. But FICO isn't the only game in town. VantageScore is another big player, and they have two versions (VS3 and VS4) that are currently used.
And it doesn't stop there. Some lenders use even more obscure scoring models. For example, US Bank uses the TransUnion Rapid Default Model Version 1 when they're deciding whether to give someone a loan. Plus, many lenders have their own secret, internal scoring models that they use.
FICO 8: The Reigning Champ
Out of all these different scores, the most commonly used one for lending decisions is FICO 8. Want to check your FICO 8 score? You can get two of your three FICO 8 scores for free from myfico.com (for your Equifax FICO 8 score) and creditscore.com (for your Experian FICO 8 score). Some credit card companies, like Discover and Bank of America, will also give you your TransUnion FICO 8 score if you have an account with them.
Update (June 2025): Now, you can access your TransUnion FICO 8 score for free through CreditWise, which you can find at Capital One's website: https://www.capitalone.com/creditwise/
VantageScore 3.0: The Popular but Less Important Score
You'll see VantageScore 3.0 (VS3) all over the place. Credit Karma, WalletHub, and Credit Sesame all use it. Some credit card companies like Chase, US Bank, and Capital One also show it to their customers. The problem? VS3 isn't used very often by lenders when they're making decisions. So, while it's easy to find, it's not that helpful.
The Danger of Believing the Myth
Here's where the myth of having only one credit score can cause problems. Imagine someone who thinks they only have one credit score (let's say a VS3 from Credit Karma). They might think their score is good enough to get a car loan. But when they go to the dealership, they might be shocked to find out they don't qualify because their score is too low.
Why the surprise? Because the dealership probably used a FICO score (maybe a special "auto" version) and doesn't care about VS3 at all.
Do Your Homework
The best way to avoid this kind of surprise is to do your homework. Find out which credit score a lender is likely to use before you apply for a loan. For example, if you're applying for a mortgage, lenders will use FICO scores Experian 2, TransUnion 4, and Equifax 5. Amex uses Experian FICO 8. Capital One has been known to use FICO 3 sometimes, which isn't very common.
If you're not sure which score a lender will use, ask! You can also ask online in forums to see if others know the answer. It's always good to know what number the lender will come up with so you're not caught off guard.
The Takeaway: Knowledge is Power
In conclusion, remember that you have many different credit scores. Some of them are not very important, while others are very meaningful. Always know exactly which score you're looking at and whether it will be used by a lender for a decision. Knowing this can save you from surprises and help you get the best loan rates possible.