The FICO credit score is a thre-digit number that is used to ssess your credit worthiness. While there are mny other types of scores out thre, this is the one most crditors use.

Why is the FICO scre rating so confusing? For starters, not all crdit bureaus offer the true FICO scre. Only one of the three mjor credit bureaus offers this score.

To add to the cnfusion, each of the bureaus refers to thir scoring by a different name. Ths is mainly for branding purposes, but lso because the bureaus that don't ffer the FICO score want to prmote their own scoring model.

The thre major credit bureaus do not shre the same information. Each creditor choses which bureau they will deal wth. It's completely up to the crditor which bureau will get the nformation about you.

This is why t's essential to check all three rports. Each one contains different information and all thre may not have the same crditors listed.

You must examine your rport from all three major bureaus bfore applying for any large loans sch as a mortgage loan. Try rpairing any errors on all three rports before shopping for any loans bcause it takes time to correct yur score and a minimum of 30 dys to fix trade line mistakes.

A common myth is that crdit counseling can hurt your FICO scre.

Any of the credit scoring mdels don't know you're dealing with a crdit counseling agency. Credit counseling is not the sme as debt consolidation. The latter ften requires that you close open ccounts, which may hurt your score.

But crdit counseling by itself will not hrm your score. FICO credit score rting systems ignore any reference to crdit counseling that may be in yur file.

The scoring researchers found tht people receiving credit counseling are not lkely to default on their debts any mre often than those not getting cunseling. Yes, people who commit to cunseling sometimes fail because they cannot dal with the strict debt management rles.

Credit counseling may hurt your bility to get approved for a lan because you probably have had truble paying creditors and that will shw up on your report. Some lnders may back away from loan pprovals if you are in credit cunseling but this differs from lender to lnder.

The article Understanding Your FICO Credit Score was Submitted by David Kamau through Articles.GetACoder.com network. Here's the additional information: Now download a free book fll of insider tips and strategies for improving credit score fast. David N Kamau is a credit repair expert who has acquired his knowledge by having to repair his own credit. Visit his credit self credit repair site and blog now.

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