Definition
A credit score is a number that indicates the creditworthiness of an applicant or account holder. It is based on a complicated and proprietary credit risk model that calculates a number of factors found in an applicant’s credit history.
Analysis
The purpose or a credit score is to generate an objective number that can be used to predict an applicant’s creditworthiness and to compare that applicant with a creditor’s experience with similar applicants.
A credit score allows an applicant to request credit with a lender with which there has been no prior relationship to base lending experience on. It also allows a lender to objectively evaluate credit requests without bias based on an existing relationship.
There are many different varieties of credit scores. Some are designed for various lender needs and are used in credit granting decisions.
Other credit scores are consumer products, and are available for purchase by consumers. These scores are not official credit scores, and are to be used by consumers only as an indicator of what their official credit scores likely could be.
Each of the 3 main credit bureaus use multiple versions of credit scores that they sell to lenders. Each bureau also has their own version of a consumer product credit score that they sell to consumers.
Credit scoring models can be based on risk scoring models developed by Fair Isaac Corporation, or they may be based on that credit bureau’s own proprietary formulas. VantageScore is a credit score developed through a collaboration between all 3 major credit bureaus. Each bureau also maintains additional versions of credit scores.
Credit Score Products
These are the major credit scoring products that are marketed by credit bureaus:
| Equifax | Experian | TransUnion | |
| Consumer Products | |||
| Actual FICO Score | Score Power FICO Score | ||
| FICO based | PLUS Score | TransRisk Score | |
| FICO based | TransUnion FICO Score | ||
| Not FICO based | VantageScore | VantageScore | VantageScore |
| Lender Products | |||
| Not FICO based | VantageScore | VantageScore | VantageScore |
| Based on classic FICO risk models | Beacon Score | Experian/Fair Isaac Risk Score | Empirica Score |
| Based on NextGen FICO risk models | PinnacleSM Score | Experian/Fair Isaac Advanced Risk Score | FICO Risk Score, NextGen |
According to Fair Isaac Corporation, Equifax is the only credit bureau that supplies actual FICO scores to consumers. As late as 2004, the Score Power score was not a FICO score. The Score Power product is now an actual FICO score that lenders would see.
TransUnion markets a TransUnion FICO Score, but we are unable to confirm that it is now an actual FICO score. Information publicly available through Fair Isaac states that only Equifax has an actual FICO score for purchase by consumers.
None of the three main credit bureaus currently market a FICO Expansion Score based product. PRBC is a newer credit repository that specializes in alternative forms of credit. PRBC offers a FICO Expansion Score based on its reports to lenders. There is no consumer product available at this time.
