Credit reports and credit report scores are important to obtain loans, funding and it contains all your financial information like the history of your bill payment, loans, debt etc. It also contains the history of a criminal past like fraud, arrest, bankruptcy.
The FICO ( Fair, Isaac, and Company)  score was first introduced in 1989. It was used by the majority of banks and creditors. It is based on consumer credit files of the three credit bureaus: Experian, Equifax, and the TransUnion. Each bureau may have different information about your credit. FICO scores can be different and varied depending on which bureau provides the information to FICO.

Credit score
A credit score is a number. It rates the risk involved in giving you credit. It also decides the terms of the loan or the rate at which it will be given.

Free credit reports
There are free credit reporting agencies Equifax, Experian, and TransUnion that make reports every 12 months.

Credit reporting agencies
A credit reporting agency (CRA) collects information on where you live, work, and pay your bills, whether you have been sued, arrested, or have filed for bankruptcy. All this comes together in the form of a credit report. A CRA sells your credit report to employers, insurers, bankers, creditors, and others. These companies use this report to make decisions about giving you a credit, job, or an insurance policy.

You can order a free copy of the credit report every year from each of the major credit agencies – Equifax, Experian, and TransUnion through AnnualCreditReport.com. This is a government website. You can contact the agencies directly. If there is a dispute in the information in your report, place an alert or freeze your credit file.

File a complaint
Not controlled by the government you can still file a complaint against the Credit reporting agencies. Reason to file a complaint due to dissatisfaction with the outcome of a dispute, CRA does not respond to your request, improper credit report, cannot get a copy of the report, and credit monitoring problems.

Errors
If there are errors in your report, write a letter about the dispute and send it to the credit reporting agency Equifax, Experian, TransUnion. Also a copy to the agency that provided inaccurate information – bank, Credit Card Company, other organizations. Both these organizations are responsible for inaccurate information. If the error does not get corrected then file a complaint with the Consumer Financial Protection Bureau.

Negative information
Negative information can include public records like tax liens, judgments, and bankruptcies, etc that provide insight into your financial status. Negative information can be reported for seven years until the statute of limitations runs out, or whichever is longer. Bankruptcies can be kept for ten years, and unpaid tax for 15 years.

Fixing errors in a credit report
The individual who refuses you a loan, credit, house, insurance or a job on the basis of the credit report should give you the name, address, and telephone number of the credit reporting agency that gave the report. You can ask for a free report within 60 days if a company denies you credit. The credit report can be fixed by contacting the credit reporting agency tell the agency what information is inaccurate. Keep a copy of all correspondence.

Some companies promise to repair your credit report for a fee–but negative information cannot be removed from your credit report if it is correct. The breakup of the score depends on 35% payment history, 30% debt burden, 15% length of credit history, 10% types of credit used – (installment, revolving, consumer finance, mortgage) and 10% recent for credit. FICO NextGen score is between 150 and 950.

Each major credit agency markets this score differently:

• Experian: FICO Advanced Risk Score
• Equifax: Pinnacle
• TransUnion: FICO Risk Score NextGen (formerly Precision)

Before this FICO scores had different names:

• Experian: FICO Risk Model
• Equifax: BEACON
• TransUnion: FICO Risk Score, Classic (formerly EMPIRICA)