What is a FICO score?

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. The higher the score, the lower the risk.

There are other credit bureau scores, although FICO scores are by far the most commonly used. The FICO score from each credit reporting company considers only the data in your credit report at that company. If your current scores from the three credit reporting agencies are different, it's because the information those agencies have on you is different. As your data changes at the credit reporting agency, so will any new score based on your credit report.

Late payments will lower your score, but establishing or re-establishing a good track record of making payments on time will raise your score.