Recently, we shared how the FICO 9 Credit Score was figured, and this week we will tell you how FICO Credit Scores are a big fake, says Bernice Ross at INMAN. As you recall FICO Credit Scores run from 300, considered the highest risk of default, to 850, the lowest risk. Did you know that the same credit bureau could report three wildly different numbers for your credit score on the same day? Ross decided to check other sources for her credit score. “Here’s what I found, and it illustrates how bizarre the current credit reporting systems are. (All numbers were reported by Equifax):

American Express reported Equifax score: 680
CreditKarma: 618
Fair Issac (lender-pulled FICO score): 668
Equifax member: 720
That’s more than a 100-point variance from the same credit-reporting bureau!

FICO Credit Scores Are a Big Fake
Many know that you can get your credit report online. Ross found that there’s a difference between the credit report online and the full credit report. “The full credit report included all of our opened and closed accounts for housing, auto, and revolving credit and also included a comprehensive payment history, including any late pays.

You can be on time with no missed payments and still score low. Why? “The percentage of available credit and your on-time payment history are the two biggest determinants of your credit score. Revolving credit is indeed the 800-pound gorilla in this equation. Here’s how they will rank you based upon the percentage of revolving credit that you are using:

Excellent: 0 to 9 percent

Good: 10 to 29 percent

Fair: 30 t0 49 percent

Poor: 50 to 74 percent

Very poor: 75 percent or more

To put this in context, if you have a $10,000 credit line and you’re using $5,001 of it, you have a “poor” ranking. And if you have a balance of $3,000, your ranking is only “fair.”

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Author's Bio: 

Obsidian Home Solutions is the areas' premier real estate solutions company, and since our inception we have been helping homeowners along with improving communities in each and every city we work in. Through our extensive knowledge of the business, network of resources, and years of expertise, we are able to assist homeowners with a wide variety of real estate problems. We pride ourselves on our reputation for working one-on-one with each customer to handle their individual situations.