In detail
The FICO Score is a credit scoring model developed by the Fair Isaac Corporation. It uses data from a consumer's credit reports at the national credit reporting companies to produce a numerical summary of credit risk. Lenders, such as banks and credit unions, use FICO Scores when evaluating applications for loans, credit cards, and other forms of credit. The FICO Score is not a credit bureau; it is a product created by an analytics company and sold through the credit reporting companies. The calculation of a FICO Score considers several categories of information, including payment history, the amounts owed, the length of credit history, new credit inquiries, and the mix of credit types. Fair Isaac has released multiple versions of the FICO Score over time, and lenders may choose which version to use. As a result, a consumer may have many different FICO Scores, depending on which credit reporting company supplied the data and which scoring model version was used. The FICO Score is distinct from the VantageScore, another credit scoring model. Both are used by lenders, but they are developed by different companies and may weight credit report information differently. Consumers can obtain their FICO Scores from various sources, sometimes for a fee and sometimes through lenders or nonprofit counseling services. Federal law, such as the Fair Credit Reporting Act, governs how credit reporting companies handle consumer data, but it does not mandate a specific scoring model.