The FICO FAKO Credit Score Mystery Unsolved.

by Vanessa Diem

Are you planning to take a loan - to buy that house by the lake, perhaps? Could it be for that new sports car that’s all the rave right now? To plan a wedding to marry the girl/ boy of your dreams? Or you’re only applying for a new credit card?

What You Need to Know about These Credit Scores

If you’re about to or have applied for a loan, you know that your credit information is necessary. There’s also the fat chance you’ve heard a couple of people throw a FICO- FAKO jargon here and there.

If you’re reading this, then you want to know what they mean and what distinguishes them. Stick around and follow through till the end. This article will arm you with enough information, should you need to make a choice or win an argument? First things First.

What is Your Credit Score ?

What is Your Credit Score ?
What is Your Credit Score ?

Think about your credit score as your report card. Your total Grade is a total of your scores in tests, homework, and exams.

Likewise, a credit bureau will calculate your credit score. How? Using your credit history. The information is analyzed to determine if you have Good or Bad Credit. So, in other words, lenders want to know if loaning you money is a risk worth taking.

What are Good and Bad Credit ?

Remember the reference to the report card? Suppose you flunked your tests. Like that wasn’t enough, you always turned in sloppy homework/ papers, and late too. Even worse, you didn’t read enough to ace your exams.

Your chances of getting good grades would be as slim. As slim as fitting into those new pair of jeans, after binge eating your favorite greasy meal for a whole month. (Well, except you’re the principal’s son or you know people in high places, as well as other exceptions to the rule).

What are Good and Bad Credit ?
What are Good and Bad Credit ?

What if you did the exact opposite; paid attention in class, turned in your well-researched paper/ homework and even became the teacher’s pet (could get you bullied a lot, but academic freedom is the best there is, isn’t it?)? Hurray for you! Good grades all the way.

Likewise, some of the following can result in bad credit:

-You’re an impulsive shopper

-You don’t pay bills on time

-You’re experiencing the effects of a bad economy.

But if you do the opposite;

-Practice controlled spending

-Pay your bills on time

- You have several credible sources.

You’re bound to have (you guessed right) Good credit.

If You Don’t Have Good Credit Scores, Does It Mean That You Have Bad Scores?

Nope, when you don’t have an A doesn’t mean you’ve failed. The Good and Bad Credit scores aren’t exhaustive extremes. There are scores between. But it’s worth it to strive for the best, right?

So, what’s The Range for Credit Scores?

So,what’s The Range for Credit Scores?
So, what’s The Range for Credit Scores?

Well, the score varies depending on the scoring system. But, a general Idea is as follows:

Excellent Credit score

700 to 850

Good credit score

680 to 699


620 to 679

Low Score

580 to 619

Poor Credit

500 to 579

Bad Credit

300 to 479

(Pretty much reminds you of the Grading System, right?)


Let’s start with:

FICO Credit Score

FICOCredit Score
FICO Credit Score

The Fair Isaac Corporation (FICO), a credit score model, was the first and only of its kind for a very long time. They have stuck around and have become a household name. Think about them as McDonald’s or the Coca-Cola of the credit score industry. FICO became known to a minority for a while but later became more open to the public in the late 1980s.

FICO developed a complex method of assessing your credit information to your eligibility. With time, FICO developed over 50 credit score systems, each tailored to cater to a different loan category. So, if you’re applying for a car or a mortgage loan, your credit information will be distinctively analyzed. This means thatyou may be creditworthy for a car loan, but not for a mortgage loan or Vice-Versa. Three credit bureaus provide FICO scores: TransUnion, Equifax, and Experian. It’s possible that your FICO score from these bureaus differs. Why? Because they use similar but peculiar credit algorithms.

FAKO Credit Score

FAKOCredit Score
FAKO Credit Score

FAKO is a contemptuous Pun, employing the combination of the words “Fake” and “FICO.” People use it generallyto refer to any credit Score that isn’t FICO. You’d never catch any Credit Score Company refer to it as FAKO. The less disdainful term is “Educational score.”

Does this mean thatthey are fake? Of course not. You see, the developers came together to create a credit score system quitelike FICO’s.

They’re famous today is because several websites offer free credit score access.

FAKO scores are useful if you want to know how you’re faring with your credit score.

So Which is Best?

If you’re looking to apply for a loan, it’s verylikely that your lender will use your FICO credit score. This is because FICO scores are more reliable. Some FAKO scores are sometimes known to be off by 100 points. In context, this means that if your real credit score is 499, your FAKO score might report it to be 599.

Applying for a loan using your FAKO score can have terrible consequences. How? It may show your eligibility for a low-interest loan. But the Lender may determine that your FICO score means higher interest. This could pose a massive problem if you’re taking on a large loan like a mortgage.

If you’re purchasing a FAKO credit score, verify its source. Why? There’s an epidemic of FAKO companies claiming to supply credible information. How do you ensure this? Check that the company is associated with a credit bureau such as CreditKarma.

Should I still Pay for a FAKO Score?

Well, your FAKO score will be a great way to keep your credit activity and your spending in check.

Bottom Line, FAKO scores are excellent if you need a wayto track your expenses or want to have an idea of your credit score. But if you want to apply for a loan, the hard truth is that actual lenders don’t usually use your FAKO score. As stated earlier, your FICO score is much more accurate.

About Vanessa Diem

Vanessa Diem is a finance blogger who has gained widespread recognition for her insightful and informative content on personal finance, investing, and money management. With a keen understanding of the complexities of the financial world, Vanessa is dedicated to providing her readers with practical advice and strategies to enhance their financial well-being.

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