A credit score is a number assigned to you by each of the credit reporting companies that estimates the risk a creditor faces when issuing credit to you.
Each of the credit reporting companies use an algorithm (or a variation of it) developed by the Fair Issacs Company (FICO). The algorithm is a complex mathematical formula.
Your credit score is based on five basic areas that are on file with each particular credit reporting company. Not all companies have the same information about you.
You see, the information is reported to those companies by creditors who use their services. A small creditor may make their decision to loan you money by using only one of the companies. Larger creditors may use all of them.
Your information is entered at those companies by human beings who can (and do) make typos. For example, your $8000 credit limit may be typed in as $5000. That would affect your credit score in a negative way.
You can find more information about how your credit score is calculated and about those five areas mentioned above by reading the article, Credit Report Score Chart.
You can also find more information in the article, Good Credit Score - Frequently Asked Questions.
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