Wait, what?

[Anonymous]

I don't even think I understand how credit works.

I take out a loan. My creditor reports that information to multiple credit agencies like Experian, TransUnion, Equifax. I think those are the big 3, right?  If FICO is a separate entity from those three, how do they get my information as well? Who else is my creditor sending my personal information to?

[thornback]

---

@Anonymous wrote:

If FICO is a separate entity from those three, how do they get my information as well? 

---

They don't - FICO doesn't maintain credit reports, they develop the scoring models used by credit bureaus to generate your FICO scores. 

The credit bureaus adopt the FICO algorithm to develop scoring.  Each bureau customizes the algorithm a bit - which is why the scores differ between them. Your creditors report to the bureaus, the bureaus have the FICO scoring models implemented, a score is generated based on the data on your reports. 

[Remedios]

@Anonymous  welcome to the forums 

Is this your first and only account? 

[Anonymous]

Fico is not a credit reporting agency, so they do not receive or store your credit-related data.

[Anonymous]

Actually the CRAs do not customize the algorithm. FICO creates the algorithm based on the unique datasets of the respective CRA's, resulting in slightly different weightings for different metrics. The result is the version is slightly different at each bureau. 

[thornback]

---

@Anonymous wrote:

Actually the CRAs do not customize the algorithm. FICO creates the algorithm based on the unique datasets of the respective CRA's, resulting in slightly different weightings for different metrics. The result is the version is slightly different at each bureau. 

---

TY for clarifying 

[Anonymous]

Welcome to the forum. There is a wealth of information here. Start coming over regularly and reading. You can glean so much from all that's here. 🙏🏻

[Thomas_Thumb]

---

@Anonymous wrote:

Actually the CRAs do not customize the algorithm. FICO creates the algorithm based on the unique datasets of the respective CRA's, resulting in slightly different weightings for different metrics. The result is the version is slightly different at each bureau. 

---

The CRAs are FICO's primary customers. FICO does customize their base algorithms at the request of the CRAs. The CRAs can and do ask for certain attributes to be weighed differently such as impact of # cards reporting balances. In some cases one CRA may ask Fico not to consider a certain "secondary" attribute in scoring while the other two want to include it. This customization is not based on the dataset per se but, rather on how the CRAs want their in-house datasets analyzed for risk assessment.

The degree of tweaking allowed has been reduced with newer Fico algorithms such as Fico 9. Fico 8 allows greater customization than F9 and the older Fico 04/Fico 98 accommodate more customization than F8.

[W261w261]

Check out this little thread: 

https://ficoforums.myfico.com/t5/General-Credit-Topics/How-do-the-CRA-s-go-about-their-daily-busines...

This is the most incredible forum. Get into it; you'll love it, and do yourself some good too.

[Anonymous]

I see so it’s generated based on the unique dataset and then potentially customized further thereafter by fico at the request of the CRA.