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While many people think of their credit score as a singular number, the truth is that most consumers have several different credit scores. This is because different credit bureaus (Equifax®, TransUnion®, and Experian®) use different scoring models, such as FICO® and VantageScore®.

FICO Scores are one of the most popular types of credit scores. TransUnion and Equifax are credit reporting agencies and have collaborated with Experian to produce VantageScore. If you compare VantageScore vs. FICO Scores, you will find that they share many similarities but feature a few key differences.

Keep reading to learn more about FICO, TransUnion, and Equifax, including how each works, which credit score bureau is best, and how you can obtain your credit scores and credit reports.

Types of Credit Scores

There are several different types of credit scores, since different companies have different ideas of which information is most predictive of whether a consumer will be a good lending risk. However, the two most common types of credit scores are the FICO Score and the VantageScore.

How FICO Works

FICO Scores are produced by the Fair Isaac Corporation and are one of the most popular types of credit scores. The Fair Isaac Corporation lists five factors that affect your FICO Score:

•   Payment history (35%)

•   Amounts owed (30%)

•   Length of credit history (15%)

•   Credit mix (10%)

•   New credit (10%)

Based on these factors, you receive a FICO credit score, which is a three-digit number between 300 and 850. Those with high credit scores will typically receive the best rates and terms from lenders.

How VantageScore Works

VantageScore is a credit scoring model developed by the three major credit bureaus: Experian, Equifax, and TransUnion. It evaluates creditworthiness using factors such as payment history, credit utilization, account age, total debt, and recent inquiries. Unlike FICO, VantageScore can generate a score with a shorter credit history, making it more accessible for new borrowers.

Similar to FICO, the scoring model ranges from 300-850, with different categories to indicate credit health:

•   781-850: Superprime

•   661-780: Prime

•   601-660: Near prime

•   300-600: Subprime

SoFi Coach℠ Chat is a tool designed to help you view and analyze your financial data, get personalized insights, learn about SoFi products, troubleshoot issues, and take certain actions in chat. Coach responses are information for you to consider and not financial advice. Coach responses are based on limited information from your connected accounts and may have inaccuracies. The insights are meant to help you think about your finances and options —they are not advice or recommendations, and they do not guarantee results. Coach may offer you options to explore SoFi products on which SoFi would earn revenue. You are solely responsible for any financial decisions you make. Coach is offered by Social Finance, LLC.

Recommended: Differences Between VantageScore and FICO Credit Scores

TransUnion vs Equifax

TransUnion and Equifax are two major credit reporting agencies, along with Experian. Each plays a key role in determining creditworthiness, but understanding their differences can help you better manage your financial health and navigate credit decisions.

How TransUnion Works

TransUnion does not actually produce its own credit score. Instead, it is one of the three major credit reporting agencies, along with Equifax and Experian. TransUnion collects payment and other information about consumers to build a consumer credit report.

However, TransUnion, along with Equifax and Experian, did create the VantageScore credit score model in 2006. VantageScore is a company that produces credit scores. So if you hear someone talking about a TransUnion credit score, they may be referring to a VantageScore credit score.

How Equifax Works

Like TransUnion, Equifax is most often thought of as a credit reporting agency rather than as a company that produces credit scores. However, Equifax is another partner in the VantageScore credit score model. So, like TransUnion, if you hear someone talking about an Equifax credit score, they may be talking about a VantageScore credit score.

Which Credit Score Bureau Is Best?

When choosing the best credit score bureau, it’s important to recognize that no single bureau is definitively superior. TransUnion, Equifax, and Experian all provide valuable insights into your credit report. The key difference lies in the information they collect and how they calculate scores, which vary slightly.

How Can You Obtain Your Credit Score?

You can check your credit score through several sources, each offering different levels of access and detail. Here are some common ways to obtain your credit score:

•   Credit card issuers and banks: Many provide free credit score access to customers.,

•   Credit bureaus: You can purchase your credit score directly from Equifax, TransUnion, or Experian.

•   Online credit monitoring services: You can sign up for credit score monitoring. SoFi’s credit monitoring service allows you to track your credit score and receive weekly updates at no cost.

•   Loan applications: Some lenders disclose your credit score when you apply for a loan.

•   FICO and VantageScore websites: You can purchase official credit scores from these scoring model providers.,,

Recommended: How Often Does Your Credit Score Update?

How Can You Obtain Your Credit Reports?

To obtain your credit reports, you can access them through several channels. The Fair Credit Reporting Act (FCRA) grants consumers the right to a free credit report from each of the three major credit bureaus — Equifax, Experian, and TransUnion — once a year. Regularly reviewing your credit report helps identify errors and detect potential identity theft.

To obtain your credit reports, you can:

•   Visit AnnualCreditReport.com, the only federally authorized website for free reports.

•   Request your reports by calling 1-877-322-8228.

•   Submit a request via mail by completing the Annual Credit Report Request Form.

•   Access additional reports through credit monitoring services or directly from the credit bureaus.

It can be a good idea to use a money tracker app to review your payment and spending history, as well as regularly review your credit report. If you find any errors or inconsistencies, you can report or dispute them to the agency in question to get any incorrect information removed. Incorrect information on your credit report can cost you points on your credit score.

What Is a Good Credit Score Range?

A good credit score range typically falls between 670 and 739 on the FICO Score scale, which ranges from 300-850. Lenders generally view scores in this range as favorable, meaning borrowers are more likely to qualify for loans and credit cards with competitive interest rates.

Credit scoring models such as VantageScore also use a 300-850 range, with a good score typically between 661 and 780. Maintaining a good credit score involves making timely payments, keeping credit utilization low, and managing different types of credit responsibly.

Recommended: How Long Does It Take to Build Credit?

The Takeaway

There are different companies that issue credit scores, so while you might think that you have a singular credit score, you actually have several different credit scores.

FICO credit scores are one of the more popular credit scores used by lenders. TransUnion and Equifax are two of the three most popular credit reporting bureaus. Along with Experian, they have partnered to create VantageScore, another common credit scoring model. Different credit score models may use different information, and it’s normal for scores from different models to vary by a few points.

Take control of your finances with SoFi Coach. You can easily view all of your accounts in one convenient dashboard: bank and investment balances, current debts, spending breakdowns, and credit score. Easily set up budgets and spot upcoming bills. And get personalized insights on everyday money questions and take action with Coach chat, the AI guide that’s powered by the playbooks of SoFi Financial Planners, so its guidance comes from expert knowledge.

Meet SoFi Coach, your smart personal guide to getting your money right.

FAQ

Which is more accurate: TransUnion, Equifax, or FICO?

No single credit score is more “accurate.” TransUnion and Equifax are credit bureaus that collect data, while FICO is a scoring model that uses that data to generate scores. Lenders may use different scores depending on the situation, so accuracy depends on which score a lender relies on.

Is the FICO Score higher than Equifax?

Sometimes FICO Scores are higher than VantageScores (the scores that are affiliated with Equifax). Other times, your VantageScore may be higher than your FICO Score. It depends on your individual situation, but it is common for your scores to be similar.

Do banks look at TransUnion or Equifax?

Different banks, credit unions, and lenders may look at different credit reports (such as TransUnion, Experian, or Equifax), depending on their preferences. Generally, companies do not disclose what credit reports or credit scores they use.

Which credit score is most accurate?

No single credit score is the most accurate, as different lenders use different models. FICO Scores are the most widely used for lending decisions, but Equifax, TransUnion, and Experian each generate their own scores based on available data. Accuracy depends on which score a lender considers most relevant.

What is a good FICO Score?

A good FICO Score typically falls between 670 and 739. Scores in this range indicate a lower risk to lenders, making it easier to qualify for loans and credit cards with favorable terms. Higher scores (740+) offer even better rates, while lower scores may lead to higher interest rates or denials.

Why is my FICO Score higher than my credit score?

When considering FICO Scores vs. credit scores, it is important to understand that while your FICO Score is a type of credit score, it is only one type of credit score. Your FICO Score may be higher than other credit scores you may have, or it could be lower. Generally, your FICO Score should be within a few points of your other credit scores.

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photo credit: iStock/tolgart

This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

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The general trend is that the older you are, the better your credit score. The average credit score for Gen Z is 678. That rises to 747 for baby boomers. This is largely because boomers have had more time to build a credit history. Your credit history shows how well you manage your debt over time and how much of a risk you are to a lender.

You can improve your credit score by paying bills on time, not using more than 30% of the credit available to you, and using a variety of loans responsibly.

Here’s an in-depth look at credit scores by age and how you can maximize your score regardless of age.

What Is a Credit Score?

Your credit score is a measure of how well you manage your debt. Lenders can access your credit score from the three main credit reporting agencies: Equifax®, Experian®, and TransUnion®. The scores you receive from each bureau vary because each bureau may have different information about your credit.

Your credit reports, on which your scores are based, show information such as loan-paying history and the status of your credit accounts. When you apply for a loan or financing, lenders use your credit score to establish how risky you are as a borrower. The riskier you are, the lower your score, and the more interest you may pay for a loan.

SoFi Coach℠ Chat is a tool designed to help you view and analyze your financial data, get personalized insights, learn about SoFi products, troubleshoot issues, and take certain actions in chat. Coach responses are information for you to consider and not financial advice. Coach responses are based on limited information from your connected accounts and may have inaccuracies. The insights are meant to help you think about your finances and options —they are not advice or recommendations, and they do not guarantee results. Coach may offer you options to explore SoFi products on which SoFi would earn revenue. You are solely responsible for any financial decisions you make. Coach is offered by Social Finance, LLC.

Recommended: How to Check Your Credit Score for Free

Average Credit Score by Age

Here’s the average credit score by age and generation as of the third quarter of 2025, according to Experian.

Generation	Age	Average Credit Score
Gen Z	18-28	678
Millennials	29-44	689
Gen X	45-60	709
Baby Boomers	61-79	747
Silent Generation	80+	760

How Does My Age Affect My Credit Score?

While age doesn’t have a direct effect on your credit score, older generations tend to have higher scores because they’ve had more time to establish a solid credit history. Factors that affect your credit score include your payment history, your credit utilization, the length of your credit history, your credit mix, and how often you’ve recently opened a new line of credit.

However, according to OpenLending and TransUnion’s “Financing the Future” report, Generation Z and millennials are more likely to move up to higher credit tiers at a faster rate than older generations because of their borrowing habits.

What Factors Affect My Credit Score?

There are five main factors that make up your FICO® credit score, each with varying weights.

Payment History

Your payment history makes up 35% of your FICO Score. It includes how promptly you pay your credit card bills, your mortgage, and any installment loans. A few late payments on credit cards or a mortgage won’t ruin your score, but any bankruptcies or collections may.

Credit Utilization

Your credit utilization makes up 30% of your FICO Score. It measures the amount of revolving credit you use versus the total amount of credit you have available (credit card limits, lines of credit, etc.).

Length of Your Credit History

The length of your credit history accounts for 15% of your FICO Score. The longer your credit history, the better, assuming you manage your credit well. Your credit history includes how long your credit accounts have been open, the age of your oldest account, the age of your newest account, and the average age of all your accounts.

Credit Mix

Your credit mix, or the diversity of your debt, accounts for 10% of your FICO Score. This includes credit cards, mortgages, home equity lines of credit (HELOCs), installment loans, student loans, and car loans. If you are successfully managing a variety of financing types, it will be reflected in your FICO Score.

New Credit Applications

When you apply for a new credit card, the lender will do a hard inquiry on your credit that could cause your score to dip slightly. New accounts also reduce the average age of your accounts, which could lower your score as well. On the flip side, a new credit card account increases the amount of credit available to you, which might lower your credit utilization rate. It might also diversify your credit mix, and if you make payments on time, it could help build your credit score.

Recommended: How Long Does It Take to Build Credit?

Average FICO Score by State

The state with the highest average credit score is Minnesota at 741, and the state with the lowest average score is Mississippi at 677, according to Experian. Average credit scores are typically influenced by demographics, unemployment rates, poverty levels, education, and income.

State	Average Credit Score
Alabama	689
Alaska	720
Arizona	709
Arkansas	693
California	721
Colorado	729
Connecticut	724
Delaware	713
District of Columbia	711
Florida	704
Georgia	692
Hawaii	730
Idaho	729
Illinois	720
Indiana	710
Iowa	728
Kansas	720
Kentucky	704
Louisiana	686
Maine	731
Maryland	714
Massachusetts	731
Michigan	717
Minnesota	741
Mississippi	677
Missouri	712
Montana	730
Nebraska	728
Nevada	699
New Hampshire	735
New Jersey	722
New Mexico	701
New York	719
North Carolina	707
North Dakota	730
Ohio	713
Oklahoma	693
Oregon	730
Pennsylvania	720
Rhode Island	719
South Carolina	699
South Dakota	731
Tennessee	703
Texas	692
Utah	728
Vermont	737
Virginia	721
Washington	734
West Virginia	699
Wisconsin	737
Wyoming	722

FICO vs VantageScore

FICO and VantageScore® are the two leading companies in the credit score industry. Both use slightly different criteria in their scoring models to determine your credit score.

The VantageScore models and the base FICO models are generic credit scores created for use by a wide range of creditors, such as private student loan companies, online lenders, and credit card issuers. FICO also creates industry-specific auto and bankcard scores, which are built on the same criteria as the base FICO Scores but are tailored for auto lenders and card issuers.

Both VantageScore and FICO update their scoring models regularly to keep up with technology and industry changes but also to ensure they remain predictive as consumer behavior changes.

With all credit scores, the lower your score, the more risk you pose to lenders. That’s why borrowers with the highest credit score get the best loan terms.

Both the base FICO Scores and the base VantageScores range from 300 to 850, while FICO’s industry-specific scores range from 250 to 900.

What Is a Good Credit Score?

According to Experian, 670-739 is considered good. Credit scores above 740 are very good, and scores above 800 are exceptional.

Here is how credit scores are categorized:

•   Poor: 300-579

•   Fair: 580-669

•   Good: 670-739

•   Very good: 740-799

•   Exceptional: 800-850

Average Credit Score by Income

Your income is not considered as part of your credit score. However, some studies, including a 2018 Federal Reserve study, found that your income may have a “moderate correlation” to your credit score.

Average Credit Score by Income (according to the latest data from American Express)
Annual Income	Average Credit Score
Low Income	658
Moderate Income	692
Middle Income	735
High Income	774

The reason your income might affect your credit score is that the higher your income, the likelier you will be able to pay your debts on time and build a strong payment history. For example, if you earn $120,000, it will be easier to pay down a debt of $10,000 than if you earn $50,000.

Nevertheless, you don’t have to be a high-income earner to build credit over time. Paying bills and debt payments on time is the most important thing.

Tips for Building Your Credit Score

•   Make on-time payments. Consistently paying bills on time is one of the most effective ways to build and maintain a strong credit score.

•   Keep credit utilization low. Aim to use no more than 30% of your available credit to show responsible credit management.

•   Limit new credit applications. Avoid frequent credit applications, as each inquiry can temporarily lower your score and indicate potential financial strain.

•   Pay down debt. Reducing outstanding balances on existing debts can improve credit utilization and positively impact your score.

•   Maintain old credit accounts. Keeping older accounts open contributes to a longer credit history, which is favorable for your score.

•   Review credit reports regularly. Check your credit report for errors and dispute any inaccuracies that could be lowering your score.

•   Use a mix of credit types. A blend of credit types, such as installment loans and credit cards, shows you can manage different forms of credit.

Practicing good fiscal management will help keep your credit score from dropping and slowly help to build your credit score over time.

The Takeaway

The general trend is that the older you are, the better your credit score. That’s because older individuals have had more time to demonstrate that they can use debt responsibly. With a higher credit score, lenders consider you less of a risk and may charge you a lower interest rate on a loan.

You can build your credit score by paying bills on time, not using more than 30% of the credit available to you, and using a variety of loans responsibly. Also, don’t apply for new loans too often, as this can lower your score.

Take control of your finances with SoFi Coach. You can easily view all of your accounts in one convenient dashboard: bank and investment balances, current debts, spending breakdowns, and credit score. Easily set up budgets and spot upcoming bills. And get personalized insights on everyday money questions and take action with Coach chat, the AI guide that’s powered by the playbooks of SoFi Financial Planners, so its guidance comes from expert knowledge.

Meet SoFi Coach, your smart personal guide to getting your money right.

FAQ

How rare is an 800 credit score?

According to Experian, nearly a quarter (22.9%) of Americans have a FICO Score of 800 or higher. The credit scoring company describes this as exceptional.

What is the average American’s credit score?

The average credit score in the U.S. was 713 in 2025, decreasing by two points from its 715 average in the third quarter (Q3) of 2024, according to Experian. Despite the slight decrease, consumers are still better off than they were 10-15 years ago.

Is 750 a good credit score for a 25-year-old?

Yes, a 750 credit score is excellent for a 25-year-old, showing responsible credit management at an early age. With this score, you’re likely to receive favorable terms on loans and credit products, setting a strong foundation for future financial goals.

What is a good credit score to buy a house?

While credit score requirements vary based on loan type, lenders generally require a credit score of at least 620 to buy a house with a conventional mortgage. Meanwhile, you can secure an FHA loan with a credit score of 580 with a 3.5% down payment or even a 500-579 credit score if you put down 10%.

What is a good FICO Score to buy a car?

You will likely need a credit score of 661 or above to get an auto loan at a good interest rate. If you have poorer credit, you can still get a loan, but you will probably have to pay more for it or find a cosigner.

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Photo credit: iStock/Jacob Wackerhausen

This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

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You may have heard of both FICO® and Experian®, but the two companies serve different purposes.

FICO is a credit scoring model developed by the Fair Isaac Corporation (FICO) that lenders often use when assessing a borrower’s creditworthiness, or how likely they are to repay debts.

Experian, on the other hand, is one of the three major credit bureaus (along with Equifax® and TransUnion®) that collect credit and debt information and use it to create individual credit reports. These credit reports offer more details about an individual’s credit history than FICO’s three-digit score.

Take a closer look at what separates FICO vs. Experian, which credit score is the most accurate, and how to keep tabs on your credit score.

What Is the Difference Between Experian Score vs FICO?

As mentioned previously, Experian is a major credit reporting agency. It does not have its own credit scoring model. However, in 2006, it partnered with Equifax and TransUnion to create the VantageScore credit score model. Like FICO, VantageScore provides three-digit credit scores for consumers, though it uses slightly different factors and weightings.

The credit score Experian provides — sometimes called an “Experian score” — relies on both VantageScore and FICO Score.

FICO works differently. As a credit scoring model, it uses a proprietary algorithm to evaluate your credit risk. Specifically, the following factors affect your credit score:

•   Your payment history

•   The amounts you owe

•   The length of your credit history

•   How much new credit you have

•   The diversity of your credit mix

While FICO is used in the majority of lending decisions, some lenders use VantageScore.

SoFi Coach℠ Chat is a tool designed to help you view and analyze your financial data, get personalized insights, learn about SoFi products, troubleshoot issues, and take certain actions in chat. Coach responses are information for you to consider and not financial advice. Coach responses are based on limited information from your connected accounts and may have inaccuracies. The insights are meant to help you think about your finances and options —they are not advice or recommendations, and they do not guarantee results. Coach may offer you options to explore SoFi products on which SoFi would earn revenue. You are solely responsible for any financial decisions you make. Coach is offered by Social Finance, LLC.

Which Credit Report Is Most Accurate?

It’s common to have multiple credit reports, including ones with Experian, Equifax, and TransUnion. It’s also common to have minor differences in your credit file from bureau to bureau. That’s because lenders don’t always report the same information at the same time to every bureau. But rest assured, credit reports from all three credit bureaus are widely considered to be accurate.

That said, it’s a good idea to regularly review your credit report. You can access yours for free via AnnualCreditReport.com or through tools such as a money tracker app.

If you find any errors or inconsistencies in your credit report, be sure to dispute them with the relevant credit bureau so the incorrect information can be removed.

Why Is My Experian Credit Score Different From FICO?

You may notice that your so-called Experian score is slightly different from your FICO Score. That’s because both scores are based on different scoring models. FICO uses its own algorithm, while Experian’s score uses both FICO and VantageScore.

While some variations are to be expected, if one score is drastically higher or lower than the other, it’s a good idea to review your credit reports and address inaccuracies.

Is Experian Better Than FICO?

No credit score is better than another. Some lenders prefer FICO, while others rely on VantageScore. Each model can provide lenders with different insights about a person’s financial habits.

The good news is that FICO and VantageScore generally calculate their scores with similar information, which means you can improve both scores simultaneously. Smart strategies include paying bills on time, keeping credit utilization low, and paying down balances.

Recommended: How Long Does It Take to Build Credit?

Is a FICO Score the Same as a Credit Score?

When comparing a FICO Score vs. a credit score, it’s important to understand that a FICO Score is a type of credit score. But of course, it’s not the only type of credit score.

VantageScore, for example, issues credit score models such as VantageScore 4.0, VantageScore 4plus™, and VantageScore 5.0. Experian, Equifax, and TransUnion also provide credit scores based on data in your credit report.

What Is My Real Credit Score?

There is no one true credit score. Instead, banks, lenders, and other companies may use different credit scores when they check your credit. And they could see different figures, depending on which credit score they use.

Fortunately, it’s relatively straightforward to check your credit score without paying. That way, you can get an idea of what your credit score is and what lenders might see when they check your credit.

What Score Do Lenders Use?

Lenders can and do consider a variety of credit scores, depending on which scoring model works the best for their specific lending criteria. Unfortunately, it’s often difficult or even impossible to know which model a particular lender uses. However, the factors that impact your credit score generally hold true regardless of the credit score model used.

Understanding Various Credit Score Models

While most credit score models start with some of the same basic data, each one uses different information and weighs credit history information differently. This can mean that the different credit score models, such as FICO and VantageScore, come up with different credit scores, even for the same consumer.

Recommended: What Is the Starting Credit Score?

How Can You Check Your Credit Score?

Keep in mind that your credit score updates at least once a month as new information comes rolling in from lenders., If you’re working on boosting your three-digit number, you may want to check on your progress every so often.

There are a few different ways that you can keep tabs on your credit score. You can sign up for a credit score monitoring service, which can provide regular credit score updates.

Another way is by using a spending app or credit card that provides access to your credit score as a feature or benefit. You may also have free access to it through your bank.

The Takeaway

FICO and Experian may be common names, but that’s where the similarities end. FICO is a widely used credit scoring model that creates a three-digit score based on reports provided by credit bureaus, including Experian. In addition to creating those detailed credit reports, Experian generates a credit score using data from FICO and another scoring model, VantageScore. Lenders may use both VantageScore and FICO when determining an individual’s creditworthiness.

Credit scoring models usually rely on a similar set of information, which means you can take the same actions to boost both scores. Making on-time payments, paying down what you owe, and diversifying your credit mix are all ways to help build up your credit score.

Take control of your finances with SoFi Coach. You can easily view all of your accounts in one convenient dashboard: bank and investment balances, current debts, spending breakdowns, and credit score. Easily set up budgets and spot upcoming bills. And get personalized insights on everyday money questions and take action with Coach chat, the AI guide that’s powered by the playbooks of SoFi Financial Planners, so its guidance comes from expert knowledge.

Meet SoFi Coach, your smart personal guide to getting your money right.

FAQ

Is Experian or FICO more reliable?

Your VantageScore and your FICO Score are two different credit scores that use two different credit models. Both are considered to be reliable. But lenders may prefer to use one model over the other, depending on which one best fits their needs.

Why is my FICO Score different on Experian?

Though it does not have its own credit scoring model, Experian generates a score using data from VantageScore and FICO. FICO, on the other hand, creates its score using only its own calculations.

How close is your FICO Score to your credit score?

People have multiple credit scores, and your FICO Score is just one of them. Most credit scores use a similar set of data, which means credit scores usually vary by only a few points. If you spot a large discrepancy between your scores, take a look at your credit report and dispute any errors or inaccuracies you see.

Which credit score is most accurate?

No one credit score is considered more accurate than the others. Rather, different credit scores may provide lenders with different insights on spending or borrowing habits.

What is a good FICO Score?

FICO Scores are generally divided into five different categories, from Poor to Exceptional. A “Good” FICO Score falls between 670 and 739. Having a FICO Score that is Very Good (740-799) or Exceptional (800-850) is even better.

Why is my FICO Score higher than my credit score?

Your FICO Score is just one of many credit scores that you may have. It may be higher or lower than other credit scores depending on the calculations used, including how the information in your credit report was weighted. As long as your various scores are within a few points of each other, there is usually no cause for alarm.

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Photo credit: iStock/Prostock-Studio

This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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When you get preapproved for a credit card, you’ve met the initial criteria to receive an offer to get a credit card. In other words, you’ve popped up on a list of consumers who satisfy a credit card company’s requirements and are being invited to apply for a card.

Here, you’ll learn the details of how preapproved credit card offers work, the difference between preapproved vs. prequalified offers, and the pros and cons of preapproved offers.

What Is a Preapproved Credit Card Offer?

A preapproved credit card offer, as noted above, is an invitation from a credit card company to apply for a credit card because you seem to meet some of the conditions for approval.

Credit card issuers usually use criteria pulled from credit reporting agencies to extend these offers. If you fall within the parameters of the credit card requirements set by the card issuer, then you may receive an offer, either via email, snail mail, or over the phone, to formally apply for approval for the card.

How Do Preapproved Credit Card Offers Work?

While it sounds promising, getting a preapproved credit card offer doesn’t necessarily mean you’re guaranteed to get approved for a credit card. Even if you’re preapproved, you’ll need to properly apply.

When you do, the credit card issuer will look over your application and usually request additional financial and personal information. The credit card company will also check your updated credit report to figure out if your credit still meets its criteria (after all, credit scores do change over time).

Preapproved vs Prequalified Credit Card Offers

The terms preapproved and prequalified often are used interchangeably when it comes to prescreened credit card offers. And within the realm of credit cards, they often are one and the same. But in other types of lending, they mean different things.

•   Preapproval means you’ve been prescreened for offers by the credit card company. These credit companies work with the three major credit reporting agencies — Equifax®, Experian®, and TransUnion® — to come up with a list of consumers that meet their lending criteria.

•   Prequalified offers are usually requested by you, the consumer. To get prequalified, you typically need to provide basic personal and financial information. During the screening process, the credit card issuer will check your credit. However, it will only conduct a soft pull, which won’t impact your credit score. After reviewing the info you submitted, the credit card company will let you know if you’re likely to get approved.

With both preapproval and prequalification, you’ll still have to submit to a hard credit inquiry and potentially provide additional financial information to actually get approved for the loan product. Keep in mind that with a hard vs. soft credit inquiry, a hard pull will usually temporarily lower your score.

Benefits of a Preapproved Credit Card

Now that you know what preapproved means for a credit card, you may be wondering what the benefits are. In general, these are the upsides of preapproval, whether for a rewards card or a virtual credit card.

Indicates Your Odds of Approval

Perhaps the most obvious benefit of getting preapproved for a credit card is that you’ll have a better sense of how likely you are to ultimately get approved for the card. Although preapproval is not a guarantee of eventual approval, if a credit card issuer has already selected you to apply and neither your financial situation nor your credit hasn’t drastically changed, you’re likely within the required parameters to get the card.

Won’t Impact Your Credit Score

One of the major benefits of getting preapproved for a credit card is that it won’t impact your credit score. To get preapproved, the card issuer does a soft pull of your credit. Only if you decide to formally apply for the card will the credit card company do a hard pull of your credit.

Could Allow You to Secure More Competitive Terms

Getting preapproved for a credit card may allow you to secure a lower interest rate than you’d otherwise be able to get. This is because the lender is effectively advertising the card to you in order to get you to apply. Keep in mind, however, that your rates aren’t set until after you formally apply.

Recommended: How to Avoid Interest on a Credit Card

May Provide Access to Better Intro Offers

Another advantage of a preapproved credit card is that it might come with more lucrative perks than what’s more widely advertised to the public. You might be privy to cards with more attractive sign-up bonuses or introductory earnings opportunities. For instance, a cash-back credit card might offer a higher initial earnings rate through preapproval offers.

Could Get a Longer Intro APR for Balance Transfer Cards

For balance transfer credit cards that allow you to transfer your existing debt over to the new card, you might be able to get a lower introductory credit card annual percentage rate (APR) for longer through preapproved offers. This could make it easier to pay off your balance in full before the regular interest rate kicks in.

Easier for You

Because credit card companies have vetted you and know that you’ve passed at least some of its criteria, you don’t have to spend time researching cards. Instead, these offers are coming to you. Still, when choosing a credit card, it doesn’t hurt to take a look around to make sure this is truly the right fit for you.

Drawbacks of a Preapproved Credit Card

While there are benefits of preapproved credit card offers, there are drawbacks to them as well.

Might Not Be the Best Card for You

While you don’t have to jump through the same hoops as you would looking for a credit card on your own, the credit card you’re preapproved for may not be the right one for you. It might be a good idea to spend some time doing your own research and understanding differences in how credit cards work even if you do get preapproved.

Could Get Flooded With Unwanted Offers

Preapproval offers mean you receive a lot of unsolicited emails, mail, or phone calls. Especially if you’re not in the market for a new credit card, you could feel inundated with offers you don’t necessarily want or need.

Potential for Theft of Personal Information

There’s a chance that a would-be criminal hoping to commit identity theft could intercept your prescreened offer and get hold of your name and mailing address. The good news is that a fraudster would likely need information beyond what’s included in a preapproval offer.

Temptation to Open More Cards

Receiving preapproved offers for credit cards may tempt you to open a new credit card you don’t necessarily need, especially if the preapproval offer includes a lucrative sign-up bonus or an extended introductory APR offer. Especially if you’re already set with your lineup of credit cards, this might entice you to take on more cards and debt than you can comfortably manage.

When You May Need Credit Card Preapproval

You might want to receive a preapproved credit card offer if you’re in the market for a new credit card and would rather not go through the full process of researching credit cards. As you know you already meet certain lending criteria, the odds of getting approved for a card can be improved.

Keep in mind, however, that you don’t need to get credit card preapproval in order to apply for a credit card. If you’re getting a credit card for the first time and have a limited credit history, for instance, you’re likely not going to get so many preapproval offers, but that doesn’t mean you can’t still try applying.

Recommended: What Is the Average Credit Card Limit?

Tips for Getting a Preapproved Credit Card Offer

If you’d like to get preapproved offers, you’ll want to opt in by visiting OptOutPrescreen.com. From there, you can choose to get these offers through the mail, email, or via phone.

Instead of waiting for offers to come to you, you can also get preapproved by visiting a credit card issuer’s website and applying for prequalification. This typically requires providing basic personal and financial information.

Recommended: How Long It Takes to Get a Credit Card

Tips for Improving Your Chances of Preapproval

While you can still get preapproved for offers if you have not-so-great credit, it’s a strong credit score that will get you offers with the most favorable terms and rates. To maintain or build your credit score and thus improve your chances of approval, make sure to do the following:

•   Avoid late payments.

•   Keep your credit utilization rate low.

•   Aim to keep cards open.

•   Don’t apply for too many new accounts.

•   Maintain a diverse mix of different forms of credit.

Recommended: When Are Credit Card Payments Due?

How Does a Preapproved Credit Card Impact Your Credit Score?

A preapproved offer for a credit card doesn’t impact your credit score. As mentioned earlier, lenders will do a soft pull of your score, which doesn’t affect your score.

But if you decide to apply for a card, the credit card issuer will do a hard pull of your credit. This will most likely ding your score, though generally only temporarily.

Opting Out of Preapproved Credit Cards

If you don’t want to get flooded by preapproval offers, you can decide to opt out. Visit the website OptOutPrescreen.com and follow the simple steps outlined on the website to do so. You then won’t be included on lists to get considered for preapproval for five years.

Recommended: Does Applying for a Credit Card Hurt Your Credit Score?

The Takeaway

A preapproved offer for a credit card means you’ve met certain lending criteria to most likely get approved for a specific card. You’ll still need to officially apply to secure approval, though. But if your credit score and financial history are the same as when you initially received the offer, there’s a high likelihood you’ll get approved.

Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.

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FAQ

How long does it take to get a credit card if you are preapproved?

It depends on the credit card and credit card company. If you’re preapproved for a card, you’ll still need to officially apply. If you do get approved for a card, it could take anywhere from five business days to two weeks for your card to arrive in the mail.

Can you get denied after preapproval?

In some cases, yes. For instance, if your credit or financial situation changed between the time you received a preapproved offer and when you applied, you might get denied.

Can I get a credit card if I am not preapproved or if I don’t qualify for a credit card?

You don’t need to get preapproved for a credit card, but it skips a few steps and can boost your odds of getting a card. However, you will need to qualify for a credit card by meeting the credit card company’s lending criteria. If you don’t qualify, you might consider applying for a secured card, which uses your cash deposit as your spending limit.

Should I still apply if I am not preapproved for a credit card?

Just because you aren’t preapproved doesn’t mean you won’t be able to get a particular credit card. Spend some time doing your homework to figure out which cards are a good fit for your needs and financial situation. When choosing a credit card, it’s important to check the rates, credit limits, and fees.

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Photo credit: iStock/akinbostanci

This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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Put simply, available credit on a credit card is how much money a cardholder has left to spend in a billing cycle. Being aware of your available credit is key to managing your money responsibly and ensuring you don’t spend beyond your credit limit. Doing so can lead to having a purchase declined or facing penalties, such as a higher interest rate.

Once you know what available credit means, however, you may find that you have further questions about how much to use and how the balance impacts your financial standing. Learn more about this important topic.

What Is Available Credit on a Credit Card?

Available credit is the amount of money that’s left on a cardholder’s account in the current billing cycle. As a cardholder uses their credit card, the purchase amounts are deducted from their credit limit, which is the maximum amount a cardholder can spend on the card. The remaining amount is what’s known as available credit.

Credit card companies recalculate your available credit every time you make a purchase and when you make a card payment. When you buy something with your credit card, your available credit falls, whereas your available credit rises when you make a payment. One of the key differences between available credit and credit limit is that your credit limit typically remains the same, regardless of your spending or payments.

The Importance of Having Available Credit

Knowing your available credit can have a significant impact on your credit card experience. The more available credit you have, the more you can spend on your card. If your available credit is low, you’ll know that you’re nearing your credit limit.

When you aren’t aware of whether you have available credit, the following scenarios can become a reality depending on how your credit card works:

•   You could have a purchase declined if you don’t have the available credit to cover it.

•   You could incur an interest rate penalty, meaning your rate will go up.

•   You could owe an over-limit fee.

•   Your credit card issuer could lower your credit limit or even close your account after multiple overages.

How to Check Your Available Credit

Cardholders can easily check their available credit in the following ways:

•   On their monthly credit card statement

•   Via the credit card company’s app or website, listed under “accounts”

•   By calling their credit card issuer through the number on the back of their card

Calculating available credit is also fairly straightforward. All a cardholder has to do is subtract their current credit card balance from the account’s total credit limit. In other words, the formula is:

Credit limit – current balance = available credit

Make sure to factor in all card-related costs when making this calculation, including account fees and interest charges, which will apply if you’re carrying a balance on a credit card.

Recommended: What Is a Charge Card?

How Much Available Credit Does It Make Sense to Use?

It’s recommended that credit card users regularly check their credit card balance and refrain from overspending in order to maintain a lower credit utilization rate. This rate reflects how much of their overall credit limit they’re using at a given time.

Credit utilization is not only important for household budget considerations, it also impacts your credit score. The lower the credit card utilization rate, the better for a cardholder’s credit score. Generally, experts recommend you aim to maintain a debt-to-credit ratio of no more than 30%, meaning you have 70% of your available credit remaining on your credit card account.

Tips for Increasing Your Available Credit

Cardholders looking to boost their available credit can leverage several action steps to get the job done.

Pay Down Your Card Balances

Perhaps the most efficient way to boost your available credit, short of not using the card at all, is to make regular payments. This will keep your credit card debt as low as possible.

For maximum results, pay your entire balance every month. If that’s not possible, pay as much as your household budget allows each month toward your credit card balance rather than only making the minimum payment. Done regularly, this will help to keep your credit card debt down and your available credit up.

Recommended: When Are Credit Card Payments Due?

Request a Credit Limit Increase

Technically, asking for — and getting — a credit limit increase from your credit card company will also boost your available credit. You’ll need good credit and a solid credit card payment history to gain approval from your credit card company though. Also note that the request for a credit limit hike may lead to a hard credit check, which could negatively impact your credit score for a brief period of time.

If you get approved for a credit limit boost, resist the temptation to overspend now that you have a higher credit limit. To be safe, don’t ask for a credit limit boost unless you’re able to pay off your current balance. That’s a good sign you can handle any potential added credit card debt.

Recommended: What Is the Average Credit Card Limit?

Get a New Credit Card

Say you’ve done a good job of making timely debt payments and have maintained a solid credit score. You stand a good chance of getting approved for a new credit card with a higher credit limit.

If your new credit card doesn’t offer a higher credit limit, you’ll still benefit from the additional available credit earned from the new card. This could help build your credit score, for example. (Just keep in mind that a new account will likely involve a hard credit pull, which will be added to your credit report and could lower your score temporarily.)

Recommended: How to Avoid Interest on a Credit Card

The Takeaway

Knowing how much available credit you have on a credit card expresses how much you still have available to spend. However, you’ll want to avoid using the entirety of your credit limit — which would take your available credit down to $0 — due to the consequences that can have. Not only could that result in a declined purchase or an increased interest rate, a high credit utilization rate can have negative implications for your credit score.

Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.

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FAQ

How much available credit should I have?

A good rule of thumb is to have at least 70% of your credit limit available. That will allow you to maintain a credit utilization rate of 30%, which can help you to avoid negative impacts to your credit score.

What does available credit mean on a credit report?

Available credit on a credit report means the amount of credit available to a consumer relative to their outstanding debt. Lenders and creditors want to see consumers with high available credit and low debt balances, as this shows responsible borrowing habits.

Is available credit the amount I can spend?

Yes, available credit is the amount of credit available to a cardholder that they can use. However, you want to keep your credit utilization low (under 30%) and your available credit vs. credit limit high (at least 70%). For this reason, spending all your available credit tends to be an unwise move and can have a negative impact on your credit score and your financial standing.

Why is my available credit low?

Low available credit means you’ve used a large portion of your credit limit. You might aim to spend less in the future to maintain a lower credit utilization rate. In the meantime, keep a close eye on your spending to avoid hitting your credit limit, which can have negative consequences. It can be a wise move to work towards having a credit utilization of no more than 30% of your limit.

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Photo credit: iStock/Ridofranz

This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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