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 ?
The press release from the bill's sponsors noted, "Fannie and Freddie's 90 percent share of the secondary mortgage market and reliance on one credit-scoring model has created a near monopoly in this field." Fannie and Freddie currently require FICO credit scores for all loans eligible for sale to them.
Sallie Mae also offers a 0.25 percentage point interest rate reduction for those who enrol in automatic debit, and free access to FICO Credit Scores on a quarterly basis, the company said.
While customers can get annual credit reports free once a year, FICO credit scores typically cost money to obtain, although some banks have been offering them free to customers.
Around 15 percent of new car buyers had FICO credit scores below 650 in the first half of 2012, up from 10.4 percent in 2009, according to Thomas King, senior director of automotive analysis at J.D.
Program products have interest rates as low as 6.95 percent and products are available to those with FICO credit scores as low as 600.
These companies use detailed formulas based on credit history, amount owed, length of credit history, new credit transactions and FICO credit scores ranging from 300 at worst to 850 at best to measure a student's risk of default.
Many apartment owners nationwide, given their pursuit of filling available units with qualified and reliable residents, may have frowned upon learning last month that more than one-quarter of Americans (43 million) hold FICO credit scores of 599 or less, which reflects poor risk for lenders.
The Fair Isaac Corporation or most known as FICO credit scores, which are sold directly to consumers using Equifax and Transunion, are dropping each and every month.
Fair Isaac Corp., the creator of the ubiquitous FICO credit scores, wants the next generation of scores to not only reflect a record of how well or poorly consumers have paid their debts in the past but also to predict how they are likely to react to future economic events.
Table 2 also shows how low FICO credit scores, high mortgage interest rates, and relatively low house price appreciation within two years of origination contributed to high default rates for the 2001 vintage loans.
In August, according to agency data, approximately 23 percent of all new FHA home purchasers had FICO credit scores above 720 -- far beyond the proportion of prior years.