Long before a credit score gave creditors an idea if they would receive their money back, common sense and a best-guess process decided if you received financing; this left room for discrimination and much human error. In addition, before the Fair Credit Reporting Act of 1971 was enacted, credit bureaus mainly collected negative information and the positives were overlooked. Those who needed the financing were not receiving it and those who did, didn’t always use it appropriately. However, when the FCRA became law, FICO saw their opportunity to market a fairer way to judge credit worthiness that involved analytics rather than human estimates.

In 1956, the Fair Isaac Company was founded. Its goal was to provide data to customers that would help them make better decisions. In 1980, the first FICO scores were being used and in 1995, FICO became popular when it was recommended that lenders use these credit scores in mortgage approvals. The scores are calculated using a very guarded secret that takes five variables into consideration: payment history, amounts owed, length of credit history, new credit and types of credit. It wasn’t until recently that these variables were made known, but how they are calculated into the score is still a secret. Rights surrounding FICO scores have come a long way since the introduction of MyFico.com in 200, which finally allowed consumers a look at their credit score.

Although a FICO scores can vary between consumer credit bureaus, they are rely on the same credit file information. In general, the top three credit agencies – Equifax, Experian, and TransUnion – will report the same information about you to creditors. There may be minor differences in payment histories and balances, which can affect your score by up to 10 points or so. When a lender requests your scores, they will often use the average of the three scores to determine if you’re a credit risk. Recently, some lenders have stepped outside the box and started to use different companies for score calculation, such as the newly popular Vantage.

When most consumers hear about fixing their credit, they think of the information presented on their credit report. FICO and Vantage credit scores are equally important, and can be boosted by fixing errors and omissions on your credit history. Vivix Credit Solutions can help you remove items from your report that are bringing your score down, giving you the best chance at becoming financed and receiving the credit score you deserve. If you believe your credit score is holding you back, give our experts a call today.