A FICO score is a credit score developed by FICO. FICO is an acronym that stood for the “Fair Isaac Corporation.” They are the analytics firm that developed the credit scoring system that is used by many lenders in the United States. FICO is not a credit bureau like Equifax, Experian, and TransUnion.
How FICO scores are used
FICO scores help lenders predict the behaviors of consumers such as the likelihood to manage credit lines, pay debts on time, and forecast potential for bankruptcy.
FICO credit scores are the most commonly used credit score. The scores use only information from credit reports.
FICO scores can range from 300 to 850. The higher your credit score, the more likely you’ll be approved for loans and receive lower interest rates.