By now, many people are well-aware that the credit score
is an important factor in finances.
The main reason people worry about their credit scores
usually has to do with borrowing money.
When consumers think about the word “credit score,” the score they are
considering is the FICO score.
Each of the three major credit bureaus has its own score,
based on the information in your report. The algorithm for figuring out your
credit score for each is slightly different. If you check a web site owned by
Experian for your credit score, it will likely be different than your actual
FICO score. The same is true of a free credit score site owned by TransUnion or
Equifax.
Don’t be fooled; many of those paid credit score sites,
and free credit score sites offer scores that are different from FICO. (In
fact, Experian was sued for fraud because some consumers think they will get
their FICO score when they visit FreeCreditReport.com.)
However, if you are using paid credit score services to look
at your score, it’s usually not going to be worth your money. Although you are
getting a credit score, it isn’t your FICO score, and it may not provide you
with an accurate picture of how lenders see you.