The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Subscribe
  • QR Code
  • Books
  • Categories
  • Coaching
  • Hire Lynnette
  • Money Coach University™
  • The Money Coach Recommends™
No Result
View All Result
The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Subscribe
  • QR Code
No Result
View All Result
The Money Coach
No Result
View All Result

FICO Score vs. PLUS Score – What’s the Difference?

Lynnette Khalfani-Cox, The Money Coach by Lynnette Khalfani-Cox, The Money Coach
in Credit Scores
Reading Time: 3 mins read
fico score vs plus score
83
SHARES
1.4k
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

If you’ve applied for a loan recently, your lender would have pulled your credit report – or even multiple credit reports – to determine your level of creditworthiness. Lenders use any number of credit scoring models to evaluate your credit standing.

Two popular scores are the FICO Score, which was developed by Fair, Isaac and Company, and the PLUS Score which was developed by Experian, a national credit reporting agency.  Both of these scoring models use different mathematical calculations to determine your credit score, and a different point scale, so one may be higher or lower than the other. For example, your FICO scores range from 300 to 850 points. But the range of scores for the PLUS scores is between 330 and 830 points.

In most cases, when people talk about your credit score, they are usually talking about your FICO score. If you want to see your FICO scores on your own, even if you’re not applying for a loan, you can get your scores from MyFico. They currently cost $19.95 each, and the price includes a credit report from either Equifax or TransUnion. To get your PLUS score, go to http://creditexpert.com, which is Experian’s consumer website. This score currently costs $14.50, and includes a credit report from Experian.

Regardless of which type of credit score you look at or buy, understanding which type of score a lender is using can be helpful when you are reviewing your credit reports, performing a credit analysis, or applying for a loan.

How the FICO Score Works

There are three primary credit bureaus in the U.S.: Equifax, Experian and TransUnion. When a lender orders your credit report from any of these three national credit reporting agencies, they will receive a FICO Score. The FICO Score is based on several elements of your credit report, including your payment track record, the total amount of debt you owe, the length of your credit history, the amount of new credit you have, and the types of credit used.

FICO scores have different names at each of the major credit bureaus. Equifax calls it the BEACON® Score and TransUnion calls it EMPIRICA®. Experian calls it the Experian/Fair Isaac Risk Model, but uses its own system to determine the PLUS Score (see below).

How the PLUS Score Works

The PLUS Score is a consumer-focused credit score that was created in response to the need for U.S. consumers who wanted more information about their credit standing. By “consumer focused”, I mean that while you can get a PLUS Score, this isn’t the score that lenders use when they pull your credit. Therefore, the PLUS Score is mostly educational in nature. But that’s a good thing for anyone trying to better understand his or her credit standing.

Like most other credit scoring models, the PLUS Score is calculated based on several elements of a consumer’s credit report — factors including payment history, debt usage, inquiries or new applications for credit, and so on. As mentioned, the PLUS Score range runs from 330 to 830. Consumers with a low PLUS Score are considered to be “high risk”, while those with higher scores are considered to be “low risk”.

The PLUS Score is now a part of Experian’s National Score Index which provides data on consumer financial behavior around the country. When you order your credit report from Experian, you will be receiving a PLUS Score.

Determining Creditworthiness Based on Your PLUS or FICO Scores

It’s important to remember that many lenders will look at more than just your FICO Score when making a credit decision. When you are applying for a loan or a new credit card, a creditor or lender may review your work history, income level and other information as well. The FICO Credit Score is just one element of the credit review process, and every lender will use their own system for determining your level of creditworthiness.

As you review your own Experian PLUS Report, which comes with your PLUS Score, the credit bureau will also tell you how your credit compares to other consumers nationwide. Your score will be ranked in a given percentile. For instance, your score may be noted as in the “92nd percentile” the “84th percentile” or the “67th” percentile. This simply means that your score is better than 92%, 84% or 67% of the public, respectively.

Overall, your FICO Score and your Experian PLUS score, along with the credit reports you’ll get from each, will give you important insights into what’s helping – or hurting – your credit rating, and how to improve it.

Tags: FICOPLUS Scoreplus score vs fico
Previous Post

Debit Card Scams You Never Heard Of

Next Post

What to Do If Someone Files Taxes Using Your SSN

Related Posts

credit score drops

What to Do If Your Credit Score Suddenly Drops Unexpectedly

by Lynnette Khalfani-Cox, The Money Coach

Need a quick refresher about how your credit score works? Due to inflation, many consumers are being forced to rely on their credit cards to make ends meet. As a result, many consumers have seen their credit scores go down as their balances go up. Here are 3 articles that...

rent payments to boost credit score

How to Use Rent Payments to Boost Your Credit Score

by Lynnette Khalfani-Cox, The Money Coach

This post originally appeared on Sisters from AARPBlack folks often face a host of credit challenges stemming from lower incomes, discrimination, a lack of knowledge about credit scoring and more. But one additional factor — the low rate of Black homeownership in America — has also meant diminished credit scores....

protect your credit score

How to Protect Your Credit Score After Job Loss 

by Lynnette Khalfani-Cox, The Money Coach

A lack of income makes it hard to cover your expenses, which can cause your credit score to fall. But there are ways to preserve it, even if you are out of work. Here are four tips for maintaining your credit score if you have lost your job.

Best Way to Check Your Credit Score Using Apps

The Best Way to Check Your Credit Score Using These 4 Apps

by Guest Blogger

Did you know that on a $21,788 auto loan, if you have an excellent credit score (740 – 749), you can pay 311% less in interest compared to an individual with a fair credit score (580 – 669)? 311% less! Your credit score determines whether you qualify for things like...

DTI Explained

DTI or Debt-to-Income Ratio Explained w/Video

by Lynnette Khalfani-Cox, The Money Coach

If you’re in the market for a loan, chances are that lenders are going to assess something called your “DTI” – also known as your Debt-to-Income ratio. What Exactly is a DTI? And, how can you improve it in order to get that loan that you want? How DTI is...

4 Summertime Risks to Your Credit Score

by Lynnette Khalfani-Cox, The Money Coach

Just because summertime is here and you might be taking it easy, that doesn’t mean you should let your guard down when it comes to your finances. In fact, during the summer season, you should be aware of a number of potential threats that can hurt your credit rating. Some...

credit score drop

What to Do If Your Credit Score Drops Unexpectedly

by Lynnette Khalfani-Cox, The Money Coach

  Having your credit score fall unexpectedly can be as bad as losing a significant amount of money. With a lower score, your opportunities for low-interest loans, lower insurance premiums, and more affordable mortgages may be out of your reach. What’s worse is that these fluctuations may come from out...

Load More

Popular Posts

  • Car repair

    What to Do If You Can’t Afford a Car Repair Bill

    1376 shares
    Share 550 Tweet 344
  • What to Do if Your Spouse Stole Money From You

    1165 shares
    Share 466 Tweet 291
  • What to Do If You Can’t Afford to Leave Your Spouse

    1102 shares
    Share 441 Tweet 276
  • Here’s Why I Pay My Kids For Good Grades (And Maybe You Should Too)

    1008 shares
    Share 403 Tweet 252
  • What Do All Those Strange Codes In My Credit Report Mean?

    813 shares
    Share 325 Tweet 203
  • Do This Now If Your Wages Were Not Reported

    743 shares
    Share 297 Tweet 186
  • How to Find Out if a Debt Collector is Licensed to Collect Your Debt

    722 shares
    Share 289 Tweet 181

All information on this blog is for educational purposes only. Lynnette Khalfani-Cox, The Money Coach, is not a certified financial planner, registered investment adviser, or attorney. If you need specialty financial, investment or legal advice, please consult the appropriate professional. Advertising Disclosure: This site may accept advertising, affiliate payments or other forms of compensation from companies mentioned in articles. This compensation may impact how and where products and companies appear on this site. AskTheMoneyCoach™ and Lynnette Khalfani-Cox, The Money Coach® are trademarks of TheMoneyCoach.net, LLC.

©2009-2023 TheMoneyCoach.net, LLC. All Rights Reserved.

RSS / Sitemap /Submit an Article / Privacy Policy / LynnetteKhalfaniCox.com

No Result
View All Result
  • Books
  • Categories
  • Contact Lynnette
  • Get Coaching
  • Hire Lynnette
  • Money Coach University™
  • The Money Coach Recommends™
  • Home
  • Subscribe to Newsletter
  • QR Code

©2009-2021 TheMoneyCoach.net, LLC. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist