FICO score

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FICO score

Credit scoring model developed by the Fair Issac Corporation.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

Fair Isaac Company (FICO) score

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

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.

FICO Score

See Credit Score.

The Mortgage Encyclopedia. Copyright © 2004 by Jack Guttentag. Used with permission of The McGraw-Hill Companies, Inc.
References in periodicals archive ?
If your FICO credit score is below 500, you're likely out of luck.
As soon as you feel you are ready to buy a house, check your FICO credit score. Unless you can purchase a house using only cash, it will be a deciding factor in the home buying process.
On the widely used FICO credit score scale, approximately one in every 200 people achieves perfection, at least as of a 2010 estimate by the Fair Isaac Corporation, the company behind the aforementioned FICO score.
Your FICO credit score will give you a general idea of what grade you'll receive from Lending Club and Prosper, which in turn will inform the interest rate on your loan.
The purpose of this study was to determine whether use of a free credit report and credit score calculator would provide an accurate, acceptable proxy for the FICO credit score.
When applying for a business loan you should know that your personal FICO credit score, the business credit history and the completeness of your application will be examined along with the business's financials and income tax records.
Many home owners qualify for this home loan after short sale because it requires a FICO credit score of only 600.
The Bank Credit Report, established by FRANdata, advances franchising as an asset class (modeled on the FICO Credit Score), to identify the strengths and the weaknesses of franchisors, thereby helping lenders to better measure potential risk against other franchisors and other investment options they may be considering.
Factors Affecting Your FICO Credit Score Factor affecting Portion of Explanation your FICO score score (percent) Payment history 35 Payment history is the most important factor affecting your credit score.
The Fair Isaac Corp., parent of the widely used FICO credit score, is emphasizing the ways some of its analytical tools can help credit unions and other card issuers better target their card offers.
In the past, more than 15%or approximately 20 million Americans have FICO credit score below 600.