What Is the Difference in a Plus Score & a Credit Score?

The PLUS score differs slightly from the FICO credit score. The PLUS score was developed to be more consumer-friendly than the FiCO score, which financial institutions use in making lending decisions.

Scoring Scales

The PLUS scoring scale ranges from 330 to 830, while the FICO scoring scale runs from 300 to 850.

Significance

The FICO score simply summarizes the individual's credit risk for the lender, while the PLUS score shows consumers the approximate impact that different actions, such as paying down a debt or opening an account, would have on any type of credit score.

Producer

The three major credit bureaus (TransUnion, Equifax and Experian) use an algorithm developed by the Fair Isaac Corporation to come up with their credit scores. These scores are all called "FICO scores," but different bureaus sometimes come up with different scores, because they may have slightly different information in their credit reports. Only Experian offers the PLUS score.

Misconceptions

The PLUS score may use similar factors and calculations, but it is not the same as a FICO score. Lenders do not give you a lower rate if you come in with a PLUS score that is higher than your FICO score.

Considerations

If you want to learn more about how different events affect your credit scores, a PLUS score may prove beneficial. However, if you are considering applying for a loan, you should be concerned about checking your FICO score.

References

• Experian: National Score Index
• MyFICO: Credit Score Information
• Bankrate: Conflicting Credit Scores Cause Confusion