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What does FICO stand for and what is a FICO credit score? |
FICO stands for Fair Isaac Corporation, which is the company that created the industry standard credit scores used by almost all lenders. FICO has been in business since the 1950s but began building the famous FICO score in the mid 1980s.
A “FICO score" is simply a numeric summary of the information in your credit reports that represents your potential credit risk. These scores are delivered to lenders when they purchase your credit reports and review your application. A higher FICO score means that you are a lower credit risk and you will probably be approved at better rates and terms than if your FICO score is lower. If you have low scores, you could be approved with less attractive interest rates or be declined all together.
The highest FICO score you can get is 850 and the lowest is 300. The vast majority of the U.S. population scores between 500 and 799. It is very uncommon to have a credit score over 800. Anything over 750 is considered an excellent score.
There are also other types of credit scores, called non-FICO credit scores, which are not commonly used by lenders.
Not sure where you stand credit-wise? Check your credit reports and scores online today!
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