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FICO

FICO, short for Fair Isaac Corporation, is a data analytics company best known for its FICO Score, a credit-scoring model widely used to assess consumer credit risk. Founded in 1956 by Bill Fair and Earl Isaac in San Jose, California, the firm developed statistical models that translate credit history into a single numerical rating. The FICO Score is among the most widely used credit scores in the United States and is relied upon by banks, credit card issuers, mortgage lenders, and other lenders to help decide whether to extend credit and on what terms.

A typical FICO Score ranges from 300 to 850, with higher scores indicating lower risk. Scores are

Beyond consumer scoring, FICO supplies analytics software, decision-management tools, and risk models used by financial institutions

generated
from
information
in
a
consumer’s
credit
report
from
one
of
the
national
credit
bureaus
(Experian,
TransUnion,
and
Equifax).
The
most
influential
factors,
in
approximate
order
of
impact,
are
payment
history
(about
35%),
amounts
owed
(roughly
30%),
length
of
credit
history
(about
15%),
new
credit
(around
10%),
and
credit
mix
(around
10%).
The
exact
weighting
varies
by
model
and
version,
such
as
FICO
Score
8,
9,
10,
and
the
newer
FICO
10T.
for
underwriting,
pricing,
fraud
prevention,
and
portfolio
management.
The
company
also
markets
consumer
access
to
scores
and
reports
through
services
like
myFICO,
and
its
scores
are
sometimes
complemented
or
contrasted
with
other
models
such
as
VantageScore.