FICO (Fair Isaac Corporation)

FICO, or Fair Isaac Corporation, is a company that develops credit scoring models used by lenders to assess an individual's creditworthiness. Their FICO score summarizes a person’s credit history, including borrowing, repayment habits, and debt levels, into a numerical value typically ranging from 300 to 850. This score helps lenders determine the risk of lending money or offering credit. A higher FICO score generally indicates a lower risk to lenders and can lead to better loan terms. FICO scores are widely used in the United States for various financial decisions, including mortgages, auto loans, and credit cards.