FICO score

(redirected from FICO Scores)

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 ?
"Recently we saw one investor roll out a product offering up to $2 million in financing for FICO scores down to 600." The loan allows borrowers to have made a late payment on a mortgage within the past 12 months and have multiple credit incidents (such as a bankruptcy or foreclosure).
After more than USD 3.3bn in loans originated in the last five years, Upstart has demonstrated loss rates less than half those of peer platforms for borrowers with similar FICO scores.
Equifax Canada announced that it has extended a long-standing partnership with FICO to distribute FICO Scores to lenders and other businesses in Canada.
TELECOMWORLDWIRE-November 30, 2016-Telecommunications Providers Choose FICO Scores for Securitization
The scores were significantly more predictive than using bureau data alone and designed to demonstrate repayment odds consistent with traditional FICO Scores.
They do this by exploiting the fact that banks frequently offer different credit limits to households with similar FICO scores. A household with a FICO score of 719 might receive a credit limit of $2,000, while one with a FICO score of 721 might qualify for a credit limit of $5,000.
Sallie Mae offers FICO scores to some of its student loan customers.
Experian, one of the three national consumer credit data firms, said it will make its FICO scores available directly to consumers who sign up for credit tracking services.
For those with FICO scores lower than 620, fees dropped from 23 percent to 9 percent of average daily balance.
These informative scores, commonly known as FAKO scores, are not to be confused with the official FICO scores that can only be obtained from a fee-based provider (McFadden, 2007).
FICO scores also remain a mystery to most Americans, especially among potential buyers who say they'd like to buy a home in the next two years.