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 ?
While lenders currently use various scoring models to rate consumers' creditworthiness, the FICO score is the most widely used.
The expanded FICO score product is "a social good as well as a business good for the lending community," he said.
The company said anyone who buys a product with a base FICO Score 8 from myFICO.com also receives up to ten additional FICO Score versions -- five based upon Equifax data and five based upon Experian data.
A lender like OppLoans will approve people with a FICO score under 600 for a personal loan.
And 53 million do not have enough data to generate a FICO score.
According to the Fair Isaac Corporation's data, (http://www.fico.com/en/blogs/risk-compliance/us-average-fico-score-hits-700-a-milestone-for-consumers/) 20 percent of American credit card owners are ranked as "subprime" because their FICO score is 600 or lower.
Under the new program, a mobile provider that purchases FICO Scores on its customers whose equipment installment plans are being securitized can share summary statistics regarding the FICO Score distribution with third parties as part of the securitization performance documentation made available to rating agencies and investors.
Similarly, a minimum amount of current data about a prospective borrower is required before making a responsible credit decision, which is the logic behind having minimum scoring criteria for the FICO Score (see our blog at www.fico.com/en/blogs/risk-compliance/who-gets-a-fico-score).
Searches can be tailored by borrower geography, age, gender, marital status, FICO score and amortization type.
Furth will share best practices for the evaluation and adoption of FICO Score 9, and describe how Capital Services uses scorecards, prediction tools, and analytics to effectively manage the risk of its clients' credit card portfolios.