FICO isn’t a credit reporting agency; rather it uses reports from the three major credit bureaus to determine your credit scores. The three companies are: Equifax, Experian, and TransUnion. Lenders will use these scores to assess your credit risk level. The higher your score, the better. Lenders will be more inclined to give you more money for a loan, for instance, if you can show a stellar history of credit use.
There are many instances where you will need a FICO score report:
- Buying a home, car or refinancing a mortgage
- Renting an apartment
- Applying for or refinancing student loans
- Applying for a credit card or getting a job