Fico Score vs Credit Score - What is the Difference?

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Your credit score plays a vital role in managing your finances. It influences loan approvals, interest rates, and more. But what’s the difference between FICO score vs credit score? Understanding this distinction is key to making smart financial decisions. A FICO score and a credit score may seem similar, but they’re calculated differently and used in different ways. Knowing why your FICO score is higher than your credit score or vice versa can help you understand your financial standing. Let’s explore how these two scores compare and why it matters.

Credit Score Meaning

A credit score is a three-digit number, typically ranging from 300 to 900 in India, that reflects your financial behaviour. It is calculated based on factors such as your payment history, credit utilisation, and the length of your credit history. This score indicates how responsibly you manage credit, with a higher score suggesting that you're more likely to repay borrowed money on time.

Credit scores are calculated by various credit bureaus, such as CIBIL, and may differ slightly depending on the scoring model each bureau uses. A higher score generally indicates better creditworthiness, while a lower score can signal financial risk, potentially affecting your ability to secure loans or credit at favourable terms.

FICO Score Meaning

The FICO score is a credit score developed by Fair Isaac Corporation (FICO) and is widely used by lenders to evaluate creditworthiness. Spanning from 300 to 850, the score indicates the likelihood of an individual repaying borrowed funds, based on their financial background. It is calculated using factors such as payment history, amounts owed, credit history length, new credit accounts, and the types of credit used.

A higher FICO score suggests better financial reliability, while a lower score can result in higher interest rates or loan denials. Understanding your FICO score can help you make better financial decisions, as it plays a crucial role in securing loans, mortgages, and even some job opportunities.

Differences Between FICO Score and Credit Score

Here’s a comparison between FICO score vs credit score to help you understand the key differences and how each affects your financial decisions:

Aspect	FICO Score	Credit Score
Definition	A credit score developed by Fair Isaac Corporation	A general term used for any credit score model
Scoring	Focuses on payment history, credit utilisation, etc	Varies by credit bureau and model used
Accessibility	Available through MyFICO and some lenders	Available through credit bureaus like CIBIL
Calculation Criteria	Based on payment history, amounts owed, credit history, types of credit, and new credit	Similar factors but may have varying weights by bureau
Consistency	Standardised calculation used globally	Varies depending on the credit bureau and model
Year of Establishment in India	Not directly established in India, used globally	Established by bureaus like CIBIL in India
Global Parent Company	Fair Isaac Corporation (FICO)	No single parent company; provided by multiple bureaus
Headquarters in India	Not applicable, as its U.S.-based	CIBIL, headquartered in Mumbai
RBI License	Not regulated by RBI in India	Bureaus like CIBIL are licensed by RBI
Coverage	Widely used in the U.S. and globally	Used mainly in India and some other countries
Score Update Frequency	Can be updated regularly based on credit report updates	Typically updated monthly or quarterly
Credit Score Range	300 to 850	300 to 900 (in India)
Ideal Score	750 and above is considered excellent	750 and above is considered excellent
Good Credit Score Range	670 to 739	700 to 750
Bad Credit Score Range	Below 580	Below 650
Free Credit Report	Available annually on MyFICO for a fee	Available for free annually through CIBIL and other bureaus
Credit Report Subscription Fee	Can be paid to access detailed FICO score reports	May involve fees for detailed reports or continuous monitoring

Resolving Discrepancies in Your Credit Score

If you notice an error in your credit score or FICO score, it’s essential to address it quickly to maintain an accurate financial record. Discrepancies, such as incorrect late payments or wrong account details, can impact your score and future financial decisions. You can raise a dispute directly with the credit bureau, like CIBIL, through their online platform or customer service.

Providing supporting evidence, such as payment receipts or account statements, will help speed up the process. Timely resolution ensures your credit score accurately reflects your financial behaviour, allowing you to secure better loan terms.

How to Raise a Credit Dispute Online

Here’s how you can raise a dispute online with the credit bureau to correct any inaccuracies in your credit score or FICO score:

Visit the official website of the credit bureau (e.g., CIBIL) where you need to raise the dispute
Log in or create an account to access your credit report and dispute section
Select the error or discrepancy you wish to dispute from your credit report
Fill out the dispute form, providing details of the error and attaching relevant documents, like payment receipts or bank statements
Submit the dispute form and track its progress through your account dashboard
Await confirmation from the credit bureau once the investigation is completed and the issue has been resolved

Raise Dispute Offline

Here’s how you can raise a dispute offline with the credit bureau to address any errors in your credit score or FICO score:

Visit the official website of the credit bureau (e.g., CIBIL) and locate the offline dispute process details
Download the dispute form or request it by mail from the credit bureau
Complete the form, providing detailed information about the error and attaching relevant documents, such as payment records
Send the completed form and supporting documents to the credit bureau’s registered address
Wait for the credit bureau to acknowledge receipt of your dispute and initiate an investigation
Follow up with the bureau for updates until the dispute is resolved and you receive confirmation

Exploring the Key Credit Score Comparisons

CIBIL Score vs CIBIL Report	Equifax vs CIBIL Score	Credit Score vs CIBIL Score
Consumer CIBIL vs Commercial CIBIL	CRIF vs CIBIL Score	Experian vs CIBIL Score
Experian vs CRIF Score

Know About Credit Bureaus

FICO Score	CIBIL TransUnion Score 2.0	Experian Credit Score Disputes and Queries
VantageScore	Credit Scoring Models	Equifax vs CIBIL
What is a Credit Bureau	CRIF High Score	Experian Credit Score
CRIF vs CIBIL Score	CreditVision Score	TransUnion CIBIL
Equifax Credit Score	Experian vs CIBIL Score	Experian vs CRIF Score
Types of Credit Score

Which is better - FICO or credit score?

The choice between FICO score vs credit score depends on the lender and location. In the U.S., FICO scores are more widely used, while credit scores from Indian bureaus like CIBIL are common in India. Both provide insights into your creditworthiness, but the scoring models vary.

How do I check my FICO score?

You can check your FICO score through platforms like MyFICO or via some lenders offering it as part of their services. While there is usually a fee for detailed reports, you can often access a summary version for free through some financial institutions.

Do lenders look at FICO or Credit Score?

Lenders typically look at your FICO score in the U.S. and credit scores in India. Both scores help assess credit risk, but the choice depends on the lender’s preferred scoring model. FICO scores are the standard in many global markets, while credit scores vary in India.

Is a FICO score accurate?

Yes, the FICO score is highly accurate because it uses a standardised model trusted by lenders. It is widely regarded as one of the most reliable indicators of creditworthiness, reflecting a borrower’s ability to repay debt based on historical financial behaviour.