There are three credit bureaus in USA that keep a track of credit scores, the most widely accepted credit score rating system that is used in the USA was developed by Fair Isaac Corporation and is commonly referred to FICO. The methodology that is applied by them for working out a person’s credit worthiness is based on a number of factors. Credit cards taken, loans taken, repayments, income to debt ratios are some of the factors that are used to determine a person’s credit worthiness and the credit score ranges from 300 to 850. FICO have their own methodology of working out the chances of a person defaulting on a payment. They use different formulas to work out credit scores for a mortgage loan, a car loan and consumer credit and the three scores may differ as much as by 50 points. So when requesting for a FICO score one must state the purpose for which one is requesting the credit rating? Banks and other lending institutions use the FICO score to rate a person’s credit worthiness and the type of loan that they will be willing to extend and the terms.

The 3 major credit bureaus that maintain credit scores in USA are Equifax, Transunion and Experian. Each of this credit reporting bureaus use their own parameters for working out a credit score. Experian uses the FICO scoring system. Equifax credit scores are called Beacon, Beacon 5.0, Beacon 96, and Pinnacle scores. Transunion provides Empirica, Empirica Auto 95, Precision Score, and Precision 03 scores. Fair Isaac Company has developed the credit scoring method for Equifax and Transunion also but they have had some of their own rating factors that have been included in the credit scores.

One normally has to write to these credit bureaus and request for a credit score and have to also state the purpose for which the credit score is required. Some lending companies require ratings from more then one of the credit rating bureaus.

The credit reporting agencies send a credit report annually to the people whose credit scores they maintain. But one can also ask for a credit score at any time. Some of the credit reporting agencies charge a fee to send the credit score and some also cut scores for getting a credit rating report. One can also get the 3 bureau online credit report. There are other credit scoring methods that are also used like the three major credit reporting agencies; Equifax, Experian and Trans Union started using Vantage Score from 2006 to streamline their scoring methods and in this the credit score ranges from 501 to 900. But again even getting a Vantage Score from the 3 major credit bureaus may differ as the data that they have with them in their databases may be different.

In Canada Equifax and TransUnion credit scores are also available but the difference is that in Canada one may take out their credit scores as often as one wants and is not charged for it unlike the USA where one is charged everytime they get their credit score. The Canadian government also publishes a handbook with examples to explain the methodology used by credit bureaus to do credit scoring.

In UK the credit scoring system is quite different and quite complex and one cannot get their credit scores from credit bureaus and one does not know if they have a good or bad credit score as eacj lender uses their own methodology of working out a person’s credit worthiness.

In USA the 3 major credit bureaus have their individual web sites and one can easily contact credit bureau and get the procedure for getting their credit score. The credit bureaus are required to provide a free credit bureau report annually. In case one does not receive their annual credit report one can contact the credit bureaus and request for it and they generally send this in the mail.