In simpler terms, a FICO score is simply your credit score. FICO stands for Fair Isaac Corporation which was founded in 1956. They developed the FICO score, which is a measure of credit risk. The Fico score is calculated statistically with information within a consumer’s credit file. FICO scores are used primarily in credit decisions by banks and other providers of credit. Banks may offer better interest rates on loans, mortgages or other financial instruments to those consumers who have a higher Fico score. Consumers with a low FICO score may be denied credit, charged higher interest rates, or require extensive income and asset verification.
Tags: Fico/Credit Score
