FICO score

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FICO score

Credit scoring model developed by the Fair Issac Corporation.

FICO Score

A way of measuring an individual's creditworthiness. A FICO score is a quantification of a variety of factors in an individual's background, including a history of default, the current amount of debt, and the length of time that the individual has made purchases on credit. A FICO score ranges between 350 and 850. In general, a score of 650 is considered a "fair" credit score, while 750 or higher is considered "excellent." A FICO score is a convenient way to summarize an individual's credit history and is included in a credit report. The term comes from the Fair Isaac Corporation, which created the system.

FICO score.

Created by the Fair Isaac Corporation, FICO is the best-known credit scoring system in the United States.

Based on the information in your credit report, your FICO score is calculated using complex, proprietary formulas that weigh the amount of debt you carry relative to your available credit, the timeliness of your payments, the type of debt you carry, and a great many other factors to assign you a credit score between 300 and 850.

The top 20% of credit profiles receive a score over 780 and the lowest 20% receive scores under 620. Lenders use your credit score to assess your credit risk, or the likelihood that you will default on a loan and offer the best -- or lowest -- interest rates to credit applicants with the highest scores.

The Equal Credit Opportunity Act (ECOA) prohibits factors such as race, color, gender, religion, national origin, or marital status from being considered in any credit scoring system, including FICO.

Fair Isaac Company (FICO) score

A credit score, based on the name of the company that wrote the software that calculates the scores.

FICO Score

See Credit Score.

References in periodicals archive ?
The program enables the financial institution to share with their customers the same FICO Scores used to manage their accounts.
Today, the holders of more than 100 million consumer credit accounts have access to their FICO Scores for free through the FICO Score Open Access Program.
SPFC Chief Executive Officer John Johnston said, "This program brings a great deal of relief for the most underserved of all borrowers--those currently with FICO scores below 620.
According to Guardhill Financial's Julie Teitel, there hasn't been any evidence of an increased number of people with below 600 FICO scores.
Too bad Cupid doesn't consult FICO scores before shooting arrows.
FICO scores range from 300-850, with 720 or more as excellent.
For instance, Equifax calls its FICO scores "BEACON" scores.
This is a perfect time to give all iPhone and iPod touch users a cool, easy way to estimate their FICO scores and gain access to the wealth of free educational content and features on myFICO," said Shon Dellinger, FICO's vice president of the myFICO.
Regular access to FICO Scores drives positive consumer behavior, results say
FICO' s findings show that millions of consumers score 620 or higher with FICO Score XD, and that once these consumers obtain credit, a majority go on to maintain good credit and achieve high traditional FICO Scores.
FICO scores range from 500 to 850, and Tehan said the scores can be improved by keeping outstanding balances low.
Businesses also can refer their customers to a co-branded Web site where Fair Isaac offers additional score insights and interactive tools, such as a FICO score simulator for "what-if" sessions that help applicants better understand how to improve their FICO scores over time.