What entities dictate your Credit Score, and are they somehow tied to the government?

The “Big 3″, as they are often called, Equifax, Experian, and TranUnion, are the major consumer reporting agencies in the USA. Though your credit score is intertwined with nearly every aspect of your life, the government is not involved and has no authority or input on determining your credit score. These agencies use an algorithm based primarily on 5 factors to calculate your FICO/credit score (Fair Isaac Corporation). To be clear, your FICO score is used by creditors to determine the risk they are taking to lend you money. Simply put, the higher the score the lower their risk. Your score is comprised of and weighted in accordance with the following percentages: Payment History 35%, Amounts Owed 30%, Length of Credit History 15%, New Credit 10%, Types of Credit Used.