FICO Score
A type of credit score that makes up a substantial portion of the credit report that lenders use to assess an applicant's credit risk and whether to extend a loan.
FICO is an acronym for the Fair Isaac Corporation, the creators of the FICO score. Investopedia Says:
Using mathematical models, the FICO score takes into account various factors in each of these five areas to determine credit risk: payment history, current level of indebtedness, types of credit used and length of credit history, and new credit.
A person's FICO score will range between 300 and 850. In general, a FICO score above 650 indicates that the individual has a very good credit history. People with scores below 620 will often find it substantially more difficult to obtain financing at a favorable rate. Related Terms:
A-Credit
Credit
Credit Bureau
Credit Report
Credit Risk
Credit Score
Line of Credit
Pre-Approval |