The Fair Isaac Corporation risk model (FICO) score is the most common type of credit scoring system in the U.S., but so secretive is the formula that not even credit professionals can predict everything in the algorithm. Add to this that the credit bureaus often give vastly different scores for the same and you have a recipe for confusion.
"FAKO" Scores
Technically, the scores you receive at any company other than the Fair Isaac Corporation are not a real FICO score. Fair Isaac stopped selling FICO scores in 2009, so Equifax, Experian and Transion--the three biggest bureaus in the U.S. as of 2011--only offer educational scores developed in partnership with Fair Isaac. While similar, the educational scores from the major bureaus have slightly variations that can compound into large variance between scores. Thus some people refer to bureaus scores as "FAKO" scores.
Considerations
Lenders that just use the credit reports from the major bureaus and only the FICO formula to rate them can still come up with very different scores from all three companies, because the reports might contain different data. The bureaus sometimes overlook or never find out about certain accounts. Leaving a good account or negative item off a credit history could have an enormous impact on the FICO model.
Effect
Different scores from the bureaus or a poor FICO score may have no effect or boost your chances at receiving a loan. The FICO score, while highly common in the consumer lending industry, is the not the only one. Lenders might develop their own risk model that gives a drastically different score from the FICO formula. Some creditors might not use a credit score at all.
Tip
You will never know how anything affects the FICO formula, so it is better to work on building your credit history. Lenders may not care about a FICO score, but they will almost always look at your report to see if you pay other accounts on time and how much debt you carry.
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