Each time you apply for a Loan, new line of Credit, an apartment, or job you can just about guarantee your Credit Score and report will get a look. The first step in knowing whether you’ll be approved for a loan, housing, or a job is to know what your FICO® score is, because this is the credit scoring model many creditors and lenders rely upon. In the United States, FICO® is considered the preeminent provider of Credit Scores. Its numerical system ranges from a low of 300 to a maximum score of 850. But Fair Isaac & Co. (the corporation behind the FICO® score) is not the only provider of credit scores, allthough FICO® is certainly the most popular and widely used.

There are many other credit scores created by different models, and these scores are often called "FAKO" scores; this term is not a technical one, but rather a play on "FICO®". So, what are "FAKO" scores? A "FAKO" score is any credit score that is not an actual FICO® score. One example   is the VantageScore®. This credit scoring system was created by the three major credit bureaus--Experian, Equifax, and TransUnion--and ranges from 501 to 990. And besides the joint-venture VantageScore®, the three credit bureaus have also created their own individual credit scoring model. Lenders, Credit Card companies, and other financial institutions also calculate their own credit scores (generated from information contained in your Credit Reports). Most of these "FAKO" scoring methods are based on proprietary calculation models, and because they pull information for one, two, or all three of the credit bureaus, scores can vary widely.

So, what's the deal with "FAKO" and FICO® scores? "FAKO" scores are both valuable and legitimate, because lenders and creditors often use these scores to determine your credit risk. While it's possible to ask them beforehand whether they're pulling a FICO® score or not, you likely cannot request that they only pull a partuicular credit score. Instead, lenders and creditors will pull the score of the company they already do business with. In many cases that means pulling a FICO® score, but in plenty of cases that means pulling a "FAKO."

Unfortunately, because there are so many non-FICO® scores available, it can be difficult to keep track of them all. For example, if you haven't done so yet in 2012, purchase your credit scores from Experian, Equifax, and TransUnion. Are they the same? Probably not. This is just one reason the process of credit scoring can be problematic for consumers.

Ultimately, as much as people complain about how credit scores are calculated, FICO®’s widespread acceptance streamlines the process somewhat. To the extent that FICO® remains the dominant scoring model, it is easier for consumers to estimate whether they’ll be approved for credit or a loan. However, because you can't anticipate whether a lender will use a FICO® or a "FAKO" score, it's best to examine your cerdit scores from a range of sources.