What is credit score (Fico score)?
A FICO score is a credit score developed by Fair Isaac & Co. Credit scoring is a method of determining the likelihood that credit users will pay their bills. Fair, Isaac began its pioneering work with credit scoring in the late 1950s and, since then, scoring has become widely accepted by lenders as a reliable means of credit evaluation. Fair, Isaac & Co. and the credit bureaus do not reveal how these scores are computed. Credit scores provide a numerical representation of a consumer’s credit at a point in time. The most popular credit score is a credit bureau risk score that is based only on what is in your credit report. Computer programs process a consumer’s credit report and analyze those factors that have been found to predict creditworthiness. The resulting score assesses the likelihood that a borrower will repay a loan or credit card on time. The higher the score the greater the likelihood that you will be approved for credit, possibly with a better rate than if you had a low sco
