Q: What does FICO mean?
A: FICO is the brand name of a credit score calculation created by Fair Issac & Co way back in 1956. A “FICO score” indicates that a credit score has been calculated using the (top secret) mathematical formula Fair Issac developed. Your FICO score is used by lenders as one of several factors in determining how big of a credit risk you are. The formula takes 5 different factors into consideration:, as indicated below:
FICO scores are the credit scores most widely used by lenders to determine your credit worthiness, although there are definitely different types of credit scores out there. An important point to remember is that any credit score is based on your credit report, and you have 3 different credit reports, so you have 3 different credit scores. We always recommend keeping a close on your credit reports with one of our top rated 3-bureau credit monitoring services.