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Newbie - What is FAKO?


Yemaya7
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Welcome aboard!

PLEASE DON'T YELL. I HAD THE VOLUME TURNED UP ON MY SPEAKERS. :)

"FAKO" is a fake FICO score (aka: "your personal credit score") given out by the CRAs and third-party credit monitoring companies like Privacy Guard (PG). It is their own interpretation of your score based on what they think are the most important factors in credit scoring. Means nothing really.

Your true score is your FICO, available at www.myfico.com

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To understand FAKO, it helps to understand FICO. FICO scores started in 1991 and grew in use exponentially in 1995 when Fannie Mae and Freddie Mac approved FICO score use by mortgage lenders. FICO is the bona fide score that 75% of creditors see when evaluating you as a credit risk. Their exact mathematical equation they use is proprietary and top secret.

FAKO (sounds like the word fake) scores are like imitation scores. While the underlying equation in an Equifax Beacon score, or a Trans Union Empirica score, or even an Experian/Fair Isaas Risk Model score may be similar to the REAL FICO, it is not the same. Fair Isaac may even have helped develop the model for a FAKO score (auto enhanced, insurance score), but FAKO scores are still different.

I've seen people's FAKO be higher than FICO, and vice versa.

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