What Low Types of Credit Scores Mean for You

Credit scores are an important metric that lenders use to make credit-granting decisions. A low credit score may make it difficult to get approved for a loan or prevent you from getting the best interest rates or loan terms. But you might not realize that there are several types of credit scores.

Since credit scores were introduced, lending requirements, data reporting practices, consumer demand for credit, and consumer use of credit have all evolved. Like upgrading a computer operating system, the FICO® Score model has improved and diversified over time to reflect changes in behavior and support specific industries.

What are the types of credit scores?

Each of the three major credit bureaus – Experian, Equifax and TransUnion – provide credit data that scoring models such as FICO® use to generate different types of FICO® Scores for different types of lending. Lenders then choose which credit score to use. These types reflect changes in consumer behavior and lending trends to properly assess borrowing risk.

From this table, you can see there are three core types of credit scores: FICO® Score, FICO® Auto Score and FICO® Bankcard Score.

• FICO® Score

A Base FICO® Score is a three-digit number between 300-850 that helps lenders determine how likely you are to repay a loan. This number impacts how much you can borrow, how long you may have to repay, and the loan interest rate.

Base FICO® Scores, like FICO® Score 8 and FICO® Score 9, are the most used type of credit score (with FICO® Score 8 being the most widely used by lenders). They’re industry-agnostic and used to predict the likelihood of repaying any credit obligation, like a mortgage, credit card, student loan or other credit products.

Each score version has similar underlying foundations and aims to effectively identify higher risk borrowers from lower risk ones. The FICO® Score algorithm still undergoes periodic reviews to incorporate unique features, leverage new risk prediction technology, and better account for current consumer credit behaviors.

However, not all lenders adopt new algorithms at once. Whenever a new FICO® Score version, like the recent FICO® Score 10 or FICO Score 10 T, lenders decide if they want to upgrade to the new Base Score. For instance, Equifax, Experian and TransUnion are still using FICO® Score 8 rather than 10.

• FICO® Auto Score

The FICO® Auto Score is designed specifically for auto loan lenders to assess the risk of lending money for a car purchase. The score factors in the borrower’s history of auto loans and ranges from 250-900. Your Auto Score may be different from your Base Score.

• FICO® Bankcard Score

The FICO® Bankcard Score is a specialized credit score that helps credit card issuers assess credit card applicant risk and set credit limits. Like the Auto Score, it’s scored from 250 to 900 and evaluates credit card use and repayment habits.

The impact of low credit scores

Just because you have a high Base FICO® Score, that doesn’t mean you’ll have the same Auto Score or Bankcard Score but keeping healthy credit habits can help to improve all versions of your score over time

Depending on the type of credit score, a low score can have a range of impacts.

• A low Base FICO® Score may impact your ability to get a mortgage, student loan, or any other personal loan. Moreover, it may complicate your ability to qualify for housing if a landlord subjects your application to a credit check.
• A low FICO® Auto Score may make it more difficult to get approved for a loan to buy or lease a car or subject you to higher interest rates.
• A low FICO® Bankcard Score may make it more difficult to qualify for certain types of credit cards, reduce your eligible credit limit, or subject you to higher interest rates.

Each lender chooses which score they want to use for different types of credit, and not all will use industry-specific scores for auto or credit card approvals. As such, it’s most important to keep your Base FICO® Score in good shape by paying bills on time and managing your credit utilization responsibly.

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Which FICO® Score version is important to me?

The FICO® Score version that’s most important to your situation depends on the credit you’re seeking.

• FICO® Auto Score: When you’re applying for auto financing-related credit evaluations, like to buy or lease a vehicle.
• FICO® Bankcard Score: When you’re applying for a credit card, you’ll want to know your FICO® Bankcard Scores or FICO Score 8, the base score used by many credit card issuers.
• Base FICO® Score: If you’re applying for personal loans, student loans and retail credit, you’ll likely want to know your FICO® Score 8. When applying for a mortgage to purchase a home or refinancing an existing mortgage, you should look for your base FICO® Score versions before FICO Score 8.

The Importance of Credit Scores

Regardless of what types of credit score your lender uses to assess your creditworthiness, it’s important to keep your credit above the lowest levels. The higher your credit is, the more likely you are to qualify for credit and get the best interest rates and loan terms.

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Reviewed and edited by Albert Fang.

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Article Title: What Low Types of Credit Scores Mean for You

https://fangwallet.com/2025/08/04/what-low-types-of-credit-scores-mean-for-you/

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