What are FICO® scores?

FICO® scores was created by Fair Issac Corporation. They consist of a three-digit number calculated based on information in consumer credit reports that are maintained by credit reporting agencies. The number summarized how likely you are to pay back your credit obligations as agreed. FICO® scores are the most widely used credit scores and are used by 90% of U.S. lenders to help them make decisions related to credit.

Why do I have multiple credit scores?

Each of the three credit bureaus: Equifax, TransUnion and Experian each have a separate FICO® score based on information the credit bureau have on you. The information that the credit bureaus keep on you may differ therefore you can have different FICO® scores.

How do FICO® scores change?

As the information in your credit file at the three credit bureau changes, your FICO® scores will change too. So your FICO® scores from last month can differ slightly for this month. Any reported late payments or bankruptcy can lower your score quickly, whereas paying your bills on time can improve your credit score over time.

What is a credit bureau?

A credit bureau is a consumer reporting agency that collects credit data on a person. They then sell this information to creditors for a fee. The information is then used to help creditors make decisions on granting loans and/or credit cards. The three largest credit bureaus in the U.S. are Equifax, Experian, and TransUnion.

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