By Rochelle N. Belnap, The Arizona Credit Law Group, PLLC
You may wonder what is this FAKO/FICO thing people keep blogging about. Up until last year, credit monitoring companies were selling you credit scores that companies like banks, car dealerships, and credit card companies were not using to determine your credit worthiness. These scores were not FICO scores, and anything not FICO is referred to as “FAKO” (fake-o).
FICO is a private company and the leading provider of credit scores in the US. Companies rely on FICO credit scores to determine whether they should extend you credit for things like houses, cars, student loans, etc.
You have 3 FICO credit scores, one for each of the major credit bureaus (Equifax, Experian, and Transunion). The scores vary between each bureau. Why? Because creditors report information differently to each bureau.
Companies, like credit card providers, are starting to offer consumers, aka you, access to your FICO credit scores for free. You can now access 2 of your FICO scores for free through www.creditkarma.com and you can buy all 3 from www.myfico.com.
This means that the FAKO/FICO issue is nearing an end because companies are giving you access to one of your FICO credit scores for free, and FICO scores are becoming more available. Yay!
Hope you found this useful and Thanks for reading!