Why Are FICO Credit Scores Different?

Most consumers wonder why their FICO credit scores are so different. If you apply for a car loan, your scores will be different than if you are applying for a mortgage. Many people wonder why these scores are so different. There are many different scoring models available through Fair Isaac (FICO). Many of these are referred to as “industry option” scoring models. These scoring models are industry specific. There are separate models for mortgages, cars, lines of credit, credit cards and other bank offered loan programs. These different scoring models take certain things into account heavier than other scoring models. For example, the auto industry-scoring model takes into account your car history heavier than everything else. If you were ever late on a car payment or had a car loan that you defaulted on, a dealer using the auto industry option will pull a lower credit score than what you might pull for a mortgage. Your negative car history would have a greater impact on your credit score than any other defaulted account. If you have good car history, your score will be much higher. The same applies if you have bad car history. FICO 08, FICO Bankcard, FICO Mortgage Industry Option, and the FICO Auto Industry scoring models are only a few of the many FICO credit scores that exist.