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About Credit Scores

When you apply for credit – whether for a credit card, a car loan, or a mortgage – lenders want to know what risk they'd take by loaning money to you.

FICO Scores

About FICO Scores:

Credit bureau scores are often called ”FICO scores“ because most credit bureau scores used in the U.S. are produced from software developed by Fair Isaac and Company. FICO scores are provided to lenders by the major credit reporting agencies.

FICO® scores are the credit scores most lenders use to determine your credit risk. You have three FICO scores, one for each of the three credit bureaus: Experian, TransUnion, and Equifax. Each score is based on information the credit bureau keeps on file about you. As this information changes, your credit scores tend to change as well. Your 3 FICO scores affect both how much and what loan terms (interest rate, etc.) lenders will offer you at any given time. Taking steps to improve your FICO scores can help you qualify for better rates from lenders.

For your three FICO scores to be calculated, each of your three credit reports must contain at least one account which has been open for at least six months. In addition, each report must contain at least one account that has been updated in the past six months. This ensures that there is enough information and enough recent information – in your report on which to base a FICO score on each report.

Having a good credit rating is more important now than ever, but determining exactly what yours is gets complicated.

News

NEWS:

Times are tough, and your credit score is crucial to financial survival. But knowing your score and getting access to it isn't so easy.

The most widely used credit score is known as FICO, which ranges from 300 to 850.

In recent years consumers have had the ability to access one free credit report a year. But getting an accurate reading of your credit score remains problematic and costly.

With foreclosures more common, lenders are tightening their standards and that means that a low score can prevent you from getting access to credit.

The House Oversight and Investigations took up the discussion in a hearing to examine credit scoring and whether consumers are granted fair access to their own three-digit numbers.