FICO Score

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Definition of 'FICO Score'

A FICO score is a three-digit number between 300 and 850 that summarizes a person's credit risk based on their credit report at a particular point in time. The number tells a prospective lender how likely someone will pay on time, with higher scores indicating lower risk and with lower scores indicating higher risk.

The credit report that the score appears on shows:
  • How the person pays
  • How much he or she owes
  • How long they have credit
  • Any new credit has been taken on
  • Different types of credit experience they've had.
Information the score does not look at on a credit report includes:
  • Marital status
  • Gender
  • Race
  • Name
  • Address
  • Income
  • Assets

FICO stands for Fair Isaac Corporation which is a public company that provides analytics and decision making solutions which include the FICO credit score.

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