About your credit score
Your credit score influences the credit that’s available to you and the terms (interest rate, etc.) that lenders offer you.
It’s a vital part of your credit health.
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.
When lenders order your credit report,
they can also buy a credit score that’s based on the information in the report.
A credit score helps lenders evaluate your credit report because it is a number that
summarizes your credit risk, based on a snapshot of your credit report at a particular point in time.
Credit scores are often called “FICO Scores” because most credit bureau scores used in the U.S.
are produced from software developed by FICO (Fair Isaac and Company).
But it’s important to understand that not every credit score you can buy online is a true FICO Score.
How scoring helps me
About FICO Score
The most widely used credit score is the FICO Score, the credit score created by Fair Isaac Corporation.
Lenders use the FICO Score to help them make billions of credit decisions every year.
Fair Isaac calculates the FICO Score based solely on information in consumer
credit reports maintained at the credit reporting agencies.
FICO credit scores range from 300 to 850. That FICO Score is calculated by a mathematical equation that
evaluates many types of information from your credit report,
at that agency. By comparing this information to the patterns in hundreds of thousands of past credit reports,
the FICO Score estimates your level of future credit risk.
Understanding Your FICO Score booklet (PDF)
Other names for FICO Score
The FICO Score has a different name at each of the 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
||Experian/Fair Isaac Risk Model
What makes a “good” FICO Score
FICO credit scores have a 300–850 score range. The higher the score, the lower the risk.
But no score says whether a specific individual will be a “good” or “bad” customer.
While many lenders use FICO credit 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.
What’s in my FICO Score
How to improve my FICO Score
Reasons for your credit score
When a FICO Score is calculated from your credit report, the credit reporting agency will also provide up to
five reasons for that particular score. While these reasons are usually negative, because it is the reasons why
the credit score isn’t higher. For a very high score, it can include those positive reasons contributing to that score.
How to improve my FICO Score
The minimum required to calculate a FICO Score
For your FICO Score to be calculated, your credit report with the bureau from which you want your score
must contain enough information—and enough recent information—on which to base your credit score.
Generally, that means you must have at least one account that has been open for six months or longer,
and at least one account that has been reported to the credit reporting agency within the last six months.
What are the minimum requirements to have a FICO Score?
3 different FICO credit scores
You have three FICO credit scores, one for each of the three credit bureaus: Equifax, TransUnion and Experian.
Each FICO Score is based on information the credit bureau keeps on file about you.
The FICO Score from each credit reporting agency considers only the data in your credit reports
at that agency. Your credit score may be different at each of the main credit reporting agencies.
If your current scores from the credit reporting agencies are different, it's probably because the information those agencies have on you differs.
If your information is identical at all three credit reporting agencies, each FICO Score should be very close.
Why are my scores different for the 3 credit bureaus?
Your FICO Score will change over time
As the information in your credit report changes, so will any new credit 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.
Do FICO Scores change that much over time?
More than one credit score
In general, when people talk about "your score" they're talking about your current FICO Score.
While the FICO Score is the most commonly used credit risk scores in the US, there is no one credit score used to make decisions about you.
Lender’s own credit scores
Lenders will often evaluate the FICO Score as well as other information that they have about you.
This includes information gathered if you are a previous or current customer of theirs.
Other credit bureau scores
There are other credit bureau scores, although FICO credit scores are by far the most commonly used.
Other credit bureau scores may evaluate your credit report differently than the FICO Score,
and in some cases a higher score may mean more risk, not less risk as with FICO credit scores.
Application risk scores
Many lenders use scoring systems that include the FICO Score but also consider information from your credit application.
Customer risk scores (aka “behavior scores”)
A lender may use customer risk scores to make credit decisions on its current customers.
Also called “behavior scores,” these scores generally consider the FICO Score along with information on how you have paid that lender in the past.
Other credit scores
These scores may evaluate your credit report differently than the FICO Score, and in some cases a higher score may mean more risk,
not less risk as with FICO credit scores. When purchasing a credit score for yourself, most experts recommend getting the FICO Score,
as this is the score most lenders use when making credit decisions.
What’s not in my FICO Score?
The Score That Matters®
The FICO Score is the standard credit score in the US, used in more than 90% of lending decisions.