Is FICO (Fair Isaac Corporation) A Credit Bureau?

No, FICO isn't a credit bureau; it's the firm that invented the scoring formula that lenders apply to the data that the three major bureaus - Equifax, Experian and TransUnion - collect and maintain, and it never stores your credit file or fixes errors on it. In short, bureaus gather the raw account activity, while FICO (Fair Isaac Corporation) processes that data through its proprietary algorithm to produce the numeric score you see. We'll explore what FICO actually does for your score in the next section.

FICO takes the data that credit bureaus collect - your trade lines, balances, payment dates, and public records - and runs it through a proprietary algorithm that outputs a three‑digit number. The model weighs each factor: payment history (≈35 % of the score), amounts owed (≈30 %), length of credit history (≈15 %), new credit (≈10 %) and credit mix (≈10 %). For example, a borrower who consistently pays a $2,000 credit‑card balance on time will see those on‑time marks boost the payment‑history slice, while a recent hard inquiry for an auto loan will slightly depress the new‑credit slice. If the same person also carries a small student‑loan balance that is being paid down, the amounts‑owed and mix categories improve, nudging the final score upward.

The algorithm recalculates the score each time a bureau updates the file, so a newly reported late payment can drop the score within days, whereas a cleared error will lift it after the next update cycle.

These calculations are why lenders 'often' prefer FICO scores: the number reflects a weighted, standardized view of the raw data the bureaus store, without the bureaus themselves assigning the score. FICO's official overview of score components.

Credit bureaus, the three major credit bureaus (Equifax, Experian, and TransUnion), collect and store every tradeline, payment, and public record linked to your identity. They maintain the credit report that lenders request, not the score itself.

When a lender orders your report, they forward the file to the FICO scoring engine, which applies its algorithm to the bureau‑provided data and returns a numeric score. This prepares the next section on how FICO translates raw bureau information into the FICO score you see.

FICO takes the raw credit‑file information that the three major bureaus collect and runs it through its proprietary scoring formulas to produce the 300‑850 number lenders see.

• pulls tradeline data (balances, limits, payment status, dates) from Equifax, Experian and TransUnion
• merges the three reports, using the most recent information for each account
• applies a weighted algorithm: payment history ≈35%, amounts owed ≈30%, length of credit history ≈15%, new credit ≈10%, credit mix ≈10%
• calculates a single score each time a bureau updates the file, typically monthly or whenever a new entry is reported
• outputs the result to lenders, credit card issuers and other consumers; FICO never stores or corrects the underlying bureau records

Lenders prefer FICO scores because they deliver a single, widely accepted risk metric built on data from the three major credit bureaus. The model's consistency, predictive power, and regulatory backing make it the go-to tool for loan decisions.

• Uniform 300‑850 scale lets lenders compare applicants instantly.
• Decades of validation show FICO predicts defaults more accurately than most alternative scores.
• Monthly updates incorporate recent activity, keeping the risk picture current.
• Loan underwriting software and many credit contracts are calibrated to FICO, lowering implementation costs.
• Regulators and major issuers endorse FICO, giving lenders confidence in compliance.

FICO isn't a credit bureau; it creates scoring models that read data supplied by Experian, Equifax and TransUnion. Free scores you see on sites or apps are usually VantageScore or a limited‑version FICO that pulls a single‑bureau snapshot, uses an older algorithm and refreshes less frequently. Because the model, data source and update schedule differ, the free number can be higher or lower than the score a lender receives.

Your lender's FICO draws the newest information from all three bureaus, applies the current version (for example FICO 10‑1), and updates monthly. It also incorporates recent hard inquiries and newly opened accounts that many free tools omit. Those methodological and timing gaps explain why your FICO often doesn't match the free score you've checked.

No, FICO cannot remove errors on your credit report. FICO is the algorithm that translates the data supplied by the three credit bureaus - Equifax, Experian, and TransUnion - into a numeric score. It never stores, verifies, or edits the underlying account information, so it has no authority to change a mistake.

If you spot an inaccuracy, you must dispute it directly with the bureau that reported the error or with the creditor that originated the data. Most disputes can be filed online; for example, the Consumer Financial Protection Bureau explains how to start a dispute. Once the bureau corrects the record, the updated information automatically feeds into the next FICO calculation.

• Contact the three credit bureaus (Equifax, Experian, TransUnion) directly through their online dispute portals or toll‑free numbers to demand a correction.
• Reach out to the creditor or lender that reported the erroneous item, ask them to investigate and send a corrected report to the bureaus.
• file a complaint with the Consumer Financial Protection Bureau or your state's attorney general for additional pressure.

Lenders see the FICO score that comes straight from the credit bureau they query, so you must obtain that exact bureau‑specific report.

1. Find the bureau the lender uses. Mortgage applications usually pull Experian, many auto loans use Equifax, and some personal loans rely on TransUnion. Ask the lender or check the loan's pre‑approval terms.
2. Order the bureau's official FICO score. Free scores from credit‑card portals are often VantageScore or a generic FICO that can differ. Purchase the FICO Score Report directly from the identified bureau via myFICO or the bureau's own website.
3. Confirm the score version. Lenders may require FICO 8, 9, 10, or a newer model; the same bureau can generate several versions, and the numeric result can change between them.
4. Request the full 'FICO Score Report.' This includes the exact score, the date of the pull, and the key factors influencing it. Order it online or by phone for an immediate hard‑pull copy.
5. Match it to the lender's estimate. Compare the number you received with any pre‑approval figure. If it's lower, ask the lender to perform a hard pull from the same bureau to see the exact score they will base a decision on.

Missing a Chase card payment triggers a late‑payment flag on your credit report once the bill is 30 days past due. Chase reports the delinquency to all three bureaus, so your FICO score can drop 50‑100 points in the short term, and the negative mark remains for seven years, with each additional miss compounding the damage.

Repair starts by paying the balance and any fees immediately, then keeping the account current for at least two years before the dent visibly lessens. Maintaining a low utilization ratio (under 30 %) and setting up automatic reminders will help prevent future dings. For a deeper look at how long late‑payment scars linger, see FICO's guide to score factors.

A credit‑bureau error once derailed a home‑buyer's mortgage approval. The borrower had a clean FICO score, but Equifax listed a $3,200 collection from a debt that was actually paid in full two years earlier.

The mistaken entry lowered the reported balance‑to‑income ratio and pushed the FICO model output below the lender's cut‑off. Because lenders pull the score and the underlying report, the loan officer rejected the application before the borrower could even see the error.

The borrower filed a dispute with the bureau, provided proof of payment, and secured a corrected report within 30 days. After the update, the lender reran the FICO calculation and approved the mortgage, illustrating why fixing bureau data - not the FICO algorithm - is the critical step.