Who is FICO?
In 1956, Bill Fair and Earl Isaac discovered that, with enough specific data, they could predict outcome by calculating probable risk. Fast forward to 2000 and firm of Fair, Isaac & Company, who now specialize in computer programs that predict how individuals will perform in the future based on past behavior, specifically using information from credit reports to calculate FICO (an acronym for Fair, Isaac & Company) scores. Here’s what you need to know. What is a FICO score? A FICO, or credit score is a computer-generated numerical grade that predicts a lender’s risk in doing business with you. You FICO can change from day to day depending on what information shows up in your credit report. Who uses FICO scores? Any company or individual that issues mortgage loans, home-equity loans, car loans, insurance policies, or healthcare services (even the IRS) bases much of its lending decisions and terms on the applicant’s FICO score. Who determines my FICO score? FICO scores are determined by
