ANSWERS: 1
  • A FICO score is a three-digit number used enumerate a person's creditworthiness. The "FICO" designation stands for "Fair, Isaac and Company," after the company that develops this scoring system for credit bureaus in the United States.

    Purpose

    The FICO score is designed to assess credit risk or a person's level of financial responsibility, running from numbers 300 (bad credit) to 850 (excellent credit). The higher your score, the better your credit and the lower your credit risk.

    Profile

    Fair, Isaac and Company (FICO) provides consulting services and enterprise decision management systems to companies in the United States, as well as to 80 countries throughout the world.

    Founding

    FICO was founded in 1956, named after its founders, engineer Bill Fair and mathematician Earl Isaac.

    Development

    FICO began building credit-scoring systems in 1958, and it started delivering them in 1970. The first credit bureau risk score by FICO was introduced in 1981. Equifax was the first credit bureau to adopt what is now known as the FICO score in 1989.

    Significance

    Used by the three major credit bureaus in the United States--Experian, Equifax and TransUnion--the FICO score is the most popular credit scoring system in the country.

    Source:

    MyFICO.com: About Credit Scores

    Fair, Isaac and Company

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