A FAKO score is any score that is not a FICO score (even though VantageScore is also called by name as well). FAKO score is a play on words, which combines a “FAKE” with “FICO” to come up with “FAKO”. The term sometimes refers dismissively to a non-FICO credit score. FICO score is the most commonly looked at credit score by lenders.
Companies that offer “FAKO” scores (such as Credit Karma, Quizzle & Credit Sesame) always avoid referring to the scores they offer as FAKO. Rather they tag it as educational scores or simply credit scores.
What is the Correlation Between FAKO & FICO Scores?
Since FAKO scores are based on data found in the individual credit reports, there is usually a correlation between a consumer’s FAKO score and their FICO score. However, since FAKO scores are not regulated and can be created using any scoring criteria this may not always be the case. In some cases, there is a major discrepancy between a FICO and FAKO score.
Is Your FAKO Score Worth Finding Out?
Depending on the purpose you need it for, it may be worthwhile finding out your FICO score. If you need it for educational purposes to know if your credit is on the rise or fall then it may be worth it. Most of the companies that offer FAKO scores also include information like how certain credit decisions will affect their score.
For the companies developing FAKO scores, they strive to make sure their scoring models closely resemble that of the FICO model. This is because there are too many FAKO scores out there.
When finding out FAKO scores, there are some things you should bear in mind.
- You must search out the company you are getting your FAKO score from. This is to ascertain if it is affiliated with a credit bureau. If not, how will they access your credit history?
- The next question you should ask is, are there any hidden fees? This is because a lot of companies offer a FAKO score in exchange for signing up for their credit monitoring program, which includes a monthly fee.
Should You Pay for FAKO Scores?
Some websites out there allow you to track your credit and look at your educational score for free.
Be it as it may, there are other websites that will charge you to look at your credit score. Even though they may advertise a free credit score. You have to key in your credit card information. And sign up for a free trial of some sort of credit monitoring product. This may end up costing you in the long run if you are not careful. Thus if you come across any site that requests for a credit card. Before you can access your FAKO score, consider looking elsewhere for your credit information.
FICO, on the other hand, charges for access to its score. Even though it is making agreements with lenders to offer free scores to consumers. If you go to the FICO site, you still have to pay for your score. But if you have a loan (including a credit card) with certain lenders, that information will soon be free. Even though you won’t have access to some of the tweaked versions of your FICO score.
What are FAKO Scores Good For?
FAKO scores can come in handy if you are looking to track your overall credit situation. Free FAKO scores, that are tracked through reputable and free credit scoring sites, can helpyou stay updated on your credit situation. Your FAKO scores can be used as a benchmark to get idea on which direction you are moving. With it, you’ll be able to know if your credit situation is improving or deteriorating.