by 
The Curious Bag
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A Fair Isaac score is another name for a FICO credit score, which is used to determine how great the risk is that a potential borrower will default on a loan.
History
The Fair Isaac Corporation was founded in 1956 by Bill Fair and Earl Isaac, and in 1958 they constructed the first credit scoring system.
Function
The Fair Isaac Corporation sells the algorithm that it has developed to the major credit bureaus, including Experian, Equifax and TransUnion, so they can calculate your credit score using the FICO formula.
Different Scores
Even though each credit bureau uses the FICO model, each bureau has slightly different information on your credit report so your scores will be different.
Importance
The FICO score is the most widely used credit score by lenders. Having a good credit score can save you thousands of dollars over the life of a mortgage, and smaller amounts for shorter term loans.
Factors
Your FICO credit score is calculated using the data in your credit report, including the amount of money you owe, whether you've made on-time payments in the past and how long and what types of credit you use.
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