What is FICO?
This is a data analytics company based in San Jose, California. It calculates consumer credit scores, helping lenders to gauge potential risk when issuing loans or credit. Founded in 1956, it was originally called Fair, Isaac and Company.
Where have you heard about FICO?
If you have ever applied for credit, a mortgage or loan, particularly in the US, it is likely you have been given a FICO score. This is used by lenders to determine your level of risk as a potential borrower.
What you need to know about FICO.
The company collects historical financial data on consumers and uses algorithms to predict how likely they are to be able to honour any loan or credit agreement. FICO scores are used by credit agencies such as Experian and Equifax, who then sell this data to lenders and other institutions. You can also directly access your credit score through the likes of FICO or Experian. This allows you to monitor how you are viewed by potential lenders and change aspects of your financial situation to improve your score if necessary.
Find out more about FICO.
Read our definition of credit score to find out how you can improve yours.