A FICO® Score is a number based on the information in your Credit Report. It’s similar to a grade you receive in school, but instead of right and wrong answers your FICO® Score is based on positive and negative credit history. Paying your bills on time and using your credit responsibly builds a positive history, while paying bills late and over-extending your credit build a negative history.
So what's a Credit Report and why's it so important? A Credit Report is a record of your payment history and other credit-related details that lenders use to determine if they should give you credit. The information on your Report is compiled by the credit bureaus, which regularly receive data on whether you make payments on time and how much you owe. Since creditors are constantly reporting new information to the bureaus, your Credit Report can change at any time.