The FICO credit score is a three-digit number that is used to assess your credit worthiness. While there are many other types of scores out there, this is the one most creditors use.

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

To add to the confusion, each of the bureaus refers to their scoring by a different name. This is mainly for branding purposes, but also because the bureaus that don't offer the FICO score want to promote their own scoring model.

The three major credit bureaus do not share the same information. Each creditor chooses which bureau they will deal with. It's completely up to the creditor which bureau will get the information about you.

This is why it's essential to check all three reports. Each one contains different information and all three may not have the same creditors listed.

You must examine your report from all three major bureaus before applying for any large loans such as a mortgage loan. Try repairing any errors on all three reports before shopping for any loans because it takes time to correct your score and a minimum of 30 days to fix trade line mistakes.

A common myth is that credit counseling can hurt your FICO score.

Any of the credit scoring models don't know you're dealing with a credit counseling agency. Credit counseling is not the same as debt consolidation. The latter often requires that you close open accounts, which may hurt your score.

But credit counseling by itself will not harm your score. FICO credit score rating systems ignore any reference to credit counseling that may be in your file.

The scoring researchers found that people receiving credit counseling are not likely to default on their debts any more often than those not getting counseling. Yes, people who commit to counseling sometimes fail because they cannot deal with the strict debt management rules.

Credit counseling may hurt your ability to get approved for a loan because you probably have had trouble paying creditors and that will show up on your report. Some lenders may back away from loan approvals if you are in credit counseling but this differs from lender to lender.

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.