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 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.

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