Understanding the different types of FICO (s) credit scores

Before developing the credit score, lenders use to physically look at each applicant’s credit report and credit history to determine whether to extend the credit. This process was very time consuming and sometimes resulted in major human errors.

As a result, Fair Isaac created the credit rating formula to help lenders make better assessments faster. The credit scoring formula looks at many variables such as debt-to-income ratio, debt types, number of late payments, and other variables.

One thing that many fail to realize is that depending on the type of loan you are applying for, you may find that your FICO credit score is very drastic. The reason is that lenders use different versions of Fair Isaac FICO scores. The goal of this article is to provide an understanding of the different types of credit results you may see when applying for credit.

Classic FICO®

The classic FICO credit score has traditionally been the most common type of credit score used by most lenders. Every year, billions of lending decisions a year are measured using Classic FICO scores. If you are looking for a mortgage, car loan, motorcycle loan or other consumer loan, it is likely that the lender will use a classic FICO credit score. The classic FICO credit score is sometimes called Beacon®, FICO Risk Score® or Empirica® depending on the credit reporting agency.

NexGen FICO® Risk Score

The NexGen FICO Risk Score is an off-shoot of the classic FICO credit score, which aims to reduce the risk to lenders while allowing them to increase their approval rate. NextGen FICO looks at far more predictable variables than the classic FICO credit score, which allows it to be more accurate. NextGen FICO is currently being widely adopted by lenders and is becoming increasingly popular in retail. The next Gen FICO credit score may also be referred to PinnacleSM, FICO® Risk Score or Advanced Risk Score.

Industry-specific FICO score

As the name suggests, certain industries have specific FICO credit scores. Usually these scores are developed from Classic FICO or Next Gen credit scores, but they will have a slightly different predictable emphasis on variables specific to the industry. You can see industry-specific credit scores for auto, bank card, financing and installment products.


A CallScore is used primarily in England. It is designed to keep records and measure the likelihood that consumers in the UK will repay their credit and not by default. As defined by Fair Isaac®, “CallScore leverages CallCredit’s UK consumer credit profile and demographic information database, combined with Fair Isaac’s predictive analytics expertise, to assess each consumer’s relative probability of default.”

In general, consumers should understand that the credit rating purchased from the credit reporting agencies may differ from the credit scores used by lenders to determine the terms of their loan request. The above types of credit ratings give consumers an overview of what type of credit score they can get when applying for credit.

Copyright (c) 2005, by Jay Fran This article is freely distributed as long as copyright, author information and the active live link below are published with the article.

Good and bad credit No advances on motorcycle loans – financing