| Along with the credit report, lenders
can also buy a credit score based on the information in the report.
That score is calculated by a mathematical equation that evaluates
many types of information that are on your credit report at that
agency. By comparing this information to the patterns in hundreds
of thousands of past credit reports, the score identifies your level
of future credit risk.
In order for a FICO® score to be calculated on your credit
report, the report must contain at least one account which has been
open for six months or greater. In addition, the 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 score.
About FICO scores
Credit bureau scores are often called "FICO scores" because
most credit bureau scores used in the US are produced from software
developed by Fair Isaac and Company. FICO scores are provided to
lenders by the three major credit reporting agencies: Equifax, Experian
and TransUnion.
FICO scores provide the best guide to future risk based solely
on credit report data. The higher the score, the lower the risk.
But no score says whether a specific individual will be a "good"
or "bad" customer. And while many lenders use FICO scores
to help them make lending decisions, each lender has its own strategy,
including the level of risk it finds acceptable for a given credit
product. There is no single "cutoff score" used by all
lenders and there are many additional factors that lenders use to
determine your actual interest rates.
Other Names for FICO Scores
FICO scores have different names at each of the three credit reporting
agencies. All of these scores, however, are developed using the
same methods by Fair Isaac, and have been rigorously tested to ensure
they provide the most accurate picture of credit risk possible using
credit report data.
| CREDIT REPORTING AGENCY |
FICO SCORE |
| Equifax |
BEACON Credit Score |
| Experian |
Experian/Fair Isaac Risk Model |
| TransUnion |
EMPIRICA Credit Score |
More than one credit score
In general, when people talk about "your credit score",
they're talking about your current FICO score. However, there is
no one score used to make decisions about you. This is true because:
- Where to find a credit score on your credit report.
A credit score is not on your credit report. You must purchase
the credit score separately. The major credit bureaus all offer
a bundled purchase of both your credit report and credit score
for just a few dollars extra.
- Credit bureau scores are not the only scores used.
Many lenders use their own scores, which often will include the
FICO score as well as other information about you.
- FICO scores are not the only credit bureau scores.
There are other credit bureau scores, although FICO scores are
by far the most commonly used. Other credit bureau scores may
evaluate your credit report differently than FICO scores, and
in some cases a higher score may mean more risk, not less risk
as with FICO scores.
- Your score may be different at each of the three main credit
reporting agencies.
The FICO score from each credit reporting agency considers only
the data in your credit report at that agency. If your current
scores from the three credit reporting agencies are different,
it's probably because the information those agencies have on you
differs.
- Your FICO score changes over time.
As your data changes at the credit reporting agency, so will any
new score based on your credit report. So your FICO score from
a month ago is probably not the same score a lender would get
from the credit reporting agency today.
Order a FICO Credit Score
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