Laws and Education

What’s In Your FICO Credit Score

How FICO credit scores work

• When you apply for credit – whether for a credit card, a car loan, or a mortgage – lenders want to know what risk they’d take by loaning money to you.

• FICO scores are the credit scores most lenders use to determine your credit risk. You have three FICO scores, one for each of the three credit bureaus – Experian, TransUnion, and Equifax. Each credit score is based on information the credit bureau keeps on file about you. As this information changes, your credit scores tend to change as well.

• Your 3 FICO credit scores affect both how much and what loan terms (interest rate, etc.) lenders will offer you at any given time.

• Taking steps to improve your FICO scores can help you qualify for better rates from lenders.

Fair Credit Reporting Act

Major Links

• The Fair Credit Reporting Act (as amended October 13, 2006) [PDF]

• The Fair and Accurate Credit Transactions Act of 2003 (PL 108-159, 12/04/03) [PDF]

• Educational Material A collection of publications for consumers and businesses regarding the FCRA

• Staff Opinion Letters (1997-2001)
  Except in unusual circumstances, the staff will no longer issue written interpretations of the FCRA

• Selected Commission FCRA Actions

• User and Furnisher Obligations FCRA-required notices

Recent Highlights

• Two Providers of Consumers’ Medical Profiles Agree to Comply with Fair Credit Reporting Act (September 17, 2007)

• Commission joins amicus brief filing in Safeco Ins. Co. v. Burr (Sup. Ct., No. 06-84), and GEICO General Ins. Co. v. Edo (Sup. Ct., No. 06-100) – meaning of “willful noncompliance” in Section 616, and “adverse action” in Section 603(k)(1)(B)(i) of the FCRA (November 14, 2006)
  
   

• Staff Files Amicus Brief in Case of Whitfield v. Radian Guaranty (3rd Cir., No. 05-5017) – right of consumer to an "adverse action" notice, when charged a higher premium for mortgage insurance because of a consumer report (March 17, 2006)
  
   

• ChoicePoint Settles Data Security Breach Charges; to Pay $10 Million in Civil Penalties, $5 Million for Consumer Redress (January 26, 2006)
  
   

• Utah Consumer Reporting Agency Agrees To Pay $120,000 To Settle FTC Charges of Failure to Use Reasonable Procedures to Insure Credit Report Accuracy (January 17, 2006)
  
   

• FTC Publishes Annual "Maximum Charge" Calculation (December 13, 2006)

  • 71 FR 74913 (12/13/06)

additional info

The Fair Debt Collections Practices Act