What Are Credit Scores?

What Is Your Score?

FICO scores, also known as Credit Scores or FICA Scores, are the numerical scores that you get when you have a credit history on your credit report. Scores range from 350 to 850 with 850 being the best. Credit Scores are an indication of your credit risk going into the future based on your past credit history. Lenders and other types of creditors like mortgage companies, auto financing companies, and credit card companies use credit scores to make lending decisions.

Why Do I Have 3 Different Credit Scores?

There are three major credit bureaus to which nearly all creditors report their customers’ credit histories. The bureaus are named: Trans Union, Experian, and Equifax. FICO stands for Fair Isaacs Corporation. Fair Isaacs developed the credit scoring system and sell proprietary versions to each of the three credit bureaus. Each bureau has a slightly different version of their FICO score system which is why there are three different scores. In general, the three scores are calculated very similarly but each emphasize different credit score factors which is why there are three credit scores. Learn more about credit score factors.

Find out How Credit Scores Are Used By Lenders and Creditors