Each of the three credit bureaus- Equifax, Transunion and Experian- assigns you a FICO score according to your current credit situation. These scores often range between 300 and 850 with 300 being poor and 850 being excellent. FICO are the most commonly used type of credit and paying attention to them can make a world of difference when you pursue future loans, investments and other financial matters.

Often the FICO score is calculated through varied bits of data from the three credit bureaus.

Often the FICO score is calculated through varied bits of data from the three credit bureaus. The overall score takes into consideration positive and negative information regarding your credit as well as everything from late payments, student loans and more. The overall score is broken down by 30 percent being the amount you owe, 10 percent being new credit, 15 percent is your length of credit history, 10 percent is the types of credit you use, and last is your payment history being 35 percent- the biggest piece of data used in determining your score. Your payment history is most important because it is an indication to any lender on how well you are at paying money owed back.

Furthermore, a FICO score is used to devise an overall credit report which is often utilized by employers and others in determining your overall responsibility. But rest assured, these scores are only calculated using credit data about you and not personal data. But for many employers, a FICO score really speaks a lot about the personal behaviors of a future or potential employee. So make sure you know what you score is, what negative data might be affecting it and how to make changes when you can.

Your score might differ according to the three main credit bureaus in the USA. Why? Because depending on how often the bureau is updated, what they receive about you may be different. Compare your findings from each one and find out which one is most up to date. And of course, be aware that your score has the potential to change at any time. The three bureaus constantly receive credit information about you from lenders and credit card companies, etc. and therefore update information whenever. Making the right decisions can keep your FICO score up there and give you peace of mind. Try your best to avoid getting in the red.

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