We have 49 different FICO scores and no, I’m not kidding

We all know that we have a FICO score, and most of us think we have just three, one per credit bureau. Would it surprise you, however, to learn that you actually have 49 different FICO scores? Is this a good thing, or a bad thing? Should I be managing one number, or 49 numbers? And, why do we have so many FICO scores?

FICO scores come in 6 different “flavors:” generic, mortgage, personal finance, bankcard, installment score and auto. Add to that the 3 different generations of the FICO score still available via each of the three credit bureaus and you can see how the numbers start to add up.  Why should you care?

FICO scores are important because lenders use them to approve or deny loans and set the terms of your accounts (credit limits, interest rates and down payment requirements), insurance companies use credit based insurance risk scores to insure or reject you (and to set premiums), employers sometimes check credit reports, the basis for credit scores, during the employment screening process, and a dramatic decrease in your score can indicate new negative credit reporting or fraud.

The good news is that solid credit management practices will result in a great score, regardless of what scoring system is being used.

Here they are….

Credit Reporting Expert, John Ulzheimer, is the President of Consumer Education at SmartCredit.com, the credit blogger for Mint.com, and a Contributor for the National Foundation for Credit Counseling.  He is an expert on credit reporting, credit scoring and identity theft. Formerly of FICO, Equifax and Credit.com, John is the only recognized credit expert who actually comes from the credit industry.  Follow him on Twitter here.