When you're talking about credit repair, it pays to understand the language (i.e. the business jargon normally used). It's important to know the meaning and implications of each term, since ignoring or assuming the meaning of something could spell disaster for you later on. In this case, we're talking about the terms "FICO" and "FAKO."
What Is FICO?
Your credit score, as you might be aware, is calculated based on the information contained in your credit report and your credit history. There are three major credit bureaus, and each one has its own formula for calculating the score – TransUnion has EMPIRICA, Equifax has PLUS and Experian has the BEACON.
There is a newer, and until now, not very well known score, called the VANTAGE score, which is a formula developed by all the three credit bureaus together in an attempt to merge the method of calculation. This score formula includes non-traditional forms of debts such as utility payments and apartment leases as well.
FICO score – so popularly attached to the credit score concept – is in fact a brand name for credit score as developed, calculated and administered by an independent company named, "Fair Isaac." In other words, FICO stands for "Fair Isaac Corporation." You can get your FICO score from myfico.com.
What Is FAKO?
Anything that is not FICO is called FAKO. If your score is not coming from myfico.com, then that score is called a FAKO score.
What's The Difference Between The FICO and FAKO Scores?
Not much – the only difference in the credit scores you get from various point of reference is the way they calculated it; i.e. their formula. However, in the end the credit score as it comes from any source will be interpreted the same.
It will not happen that, when your FICO score indicates you credit standing is bad, any FAKO score would indicate that you have a good credit standing. With a few slight variations, your score will read nearly the same no matter who calculates it nor how it is calculated.
Which One Is More Important?
Frankly speaking, your credit score is important for the fact that it indicates your standing with your debts and credit. Now, if you want a better score, stop bothering about which score you should check. Take the FICO score as a guide and take all the measures you can to improve your credit. When your FICO score improves, all the other FAKO scores will improve as well. This is because, as explained earlier, all formulas more or less converge on the same principles of credit when they compute credit scores.
Best Practice Method
If you are in the process of credit repair, ensure that you have as much (accurate) information as you can, about the present position of your credit. At this time, it would be good if side-by-side with the FICO score, you also take into consideration what the three credit bureaus have to say about you. The good news is that all three credit bureaus give your credit report for free once a year – so you can get yours free of cost.