BanesBlog

What is FICO? Learn about your FICO® Score

By Natalia Arana
Published on November 19, 2019
Fico Score

 

What is FICO?

FICO, formerly known as Fair Isaac Corporation, is the company that invented FICO® Scores. Starting in the
1950s, FICO sparked a revolution in credit risk assessment by pioneering credit risk scoring for credit
grantors. This new approach to measuring risk enabled banks, retailers and other businesses to improve
their performance and to expand consumers’ access to credit. Today, FICO® Scores are widely recognized
as the industry standard for measuring credit risk.
It is important to note that while FICO works with the consumer reporting agencies to provide your FICO®
Scores, it does not have access to or store any of your personal data or determine the accuracy of the
information in your credit file.

What are FICO® Scores?

FICO® Scores are the most widely used credit scores. Each FICO® Score is a three-digit number calculated
from the data on your credit reports at the three major consumer reporting agencies—Experian,
TransUnion and Equifax. Your FICO® Scores predict how likely you are to pay back a credit obligation as
agreed. Lenders use FICO® Scores to help them quickly, consistently and objectively evaluate potential
borrowers’ credit risk.

How are FICO® Scores different?

Not all credit scores are FICO® Scores. Because FICO® Scores are the credit scores most widely used by
lenders—FICO® Scores are used in over 90% of U.S. credit lending decisions1—knowing your FICO® Scores
is the best way to understand how potential lenders could evaluate your credit risk when you apply for a
loan or credit. Other credit scores, which use scoring formulas different from FICO’s, may not give you an
accurate representation of the scores your lender uses when assessing your credit profile.

What goes into FICO® Scores?

What goes into fico scores

What is a good FICO® Score?

The chart below provides a breakdown of ranges for FICO® Scores found across the U.S. consumer
population. Each lender has its own credit risk standards, but this chart can serve as a general guide
of what a FICO® Score represents.

Ranges of FICO® Scores
What FICO® Scores in this range mean
800 or Higher Well above the average score of U.S. consumers
Demonstrates to lenders that the consumer is an exceptional borrower
740 to 799 Above the average of U.S. consumers
Demonstrates to lenders that the consumer is a very dependable borrower
670 to 739 Near or slightly above the average of U.S. consumers
Most lenders consider this a good score
580 to 669 Below the average of U.S. consumers
Some lenders will approve loans with this score
Lower than 580 Well below the average of U.S. consumers
Demonstrates to lenders that the consumer is a risky borrower

For more information about FICO® Scores, Click here.

FICO is a registered trademark of Fair Isaac Corporation in the United States and other countries.
Banesco USA and Fair Isaac are not credit repair organizations as defined under federal or state law, including the Credit Repair Organizations Act. Banesco USA and Fair Isaac do not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history or credit rating.

 

Alert

Options:

Time Preference (USA EST Time):
9:00am - 9:30am
9:30am - 10:00am
10:00am - 10:30am
10:30am - 11:00am
11:00am - 11:30am
11:30am - 12:00pm
12:00pm - 12:30pm
12:30pm - 1:00pm
1:00pm - 1:30pm
1:30pm - 2:00pm
2:00pm - 2:30pm
2:30pm - 3:00pm
3:00pm - 3:30pm
3:30pm - 4:00pm
4:00pm - 4:30pm
4:30pm - 5:00pm

We will reply Monday through Friday between 9:00 am and 5:00 pm.