FICO Credit Score
A FICO credit score is a numerical representation of a person’s creditworthiness. It is based on a person’s credit history, which is compiled by the three major credit bureaus: Experian, Equifax, and TransUnion. The score is calculated using a variety of factors, including payment history, the amount of debt owed, the length of credit history, and the types of credit used. A FICO score ranges from 300 to 850, with higher scores indicating a better credit history.
History of the FICO Credit Score
The FICO credit score was developed in the late 1980s by the Fair Isaac Corporation (FICO). It was designed to provide lenders with a more accurate and reliable way to assess a person’s creditworthiness. Since its introduction, the FICO score has become the most widely used credit score in the United States. It is used by lenders to determine whether to approve a loan, and at what interest rate.
Comparison of Credit Scores
| Score Range | Rating |
|---|---|
| 800-850 | Excellent |
| 740-799 | Very Good |
| 670-739 | Good |
| 580-669 | Fair |
| 300-579 | Poor |
Summary
A FICO credit score is a numerical representation of a person’s creditworthiness. It is based on a person’s credit history, which is compiled by the three major credit bureaus. The score is calculated using a variety of factors, including payment history, the amount of debt owed, the length of credit history, and the types of credit used. A FICO score ranges from 300 to 850, with higher scores indicating a better credit history. For more information about FICO credit scores, visit the official FICO website or the websites of the three major credit bureaus.
See Also
- Credit Report
- Credit Bureau
- Credit Card
- Debt-to-Income Ratio
- Credit Utilization Ratio
- Credit Score Range
- Credit History
- Credit Score Calculation
- Credit Score Impact
- Credit Score Improvement
