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FICO Score

or FI·CO score

[ fahy-koh skawr ]
/ ˈfaɪ koʊ ˌskɔr /
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noun Trademark,Finance.

a type of credit score used by most banks and credit card issuers to assess an individual’s creditworthiness: FICO Scores range from a low of 300 to a high of 850, with 700 or higher generally considered a good credit score.

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Origin of FICO Score

First recorded in 1989; from FICO, a data analytics company originally named Fair, Isaac and Company
Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2021

FINANCIAL

What does FICO Score mean in credit management?

A FICO Score is a type of credit score originally devised by Fair, Isaac and Company, recently simply renamed FICO. (Fair and Isaac were the surnames of the company’s founders.) FICO Scores are used by most banks and credit card issuers to assess a person’s creditworthiness.

Scores range from a low of 300 to a high of 850, and are calculated taking into account the individual’s financial history, including the timeliness of payments of credit cards, loans, and consumer bills, and any defaults on outstanding debts. Improvements in any of these areas can raise a FICO Score, while any deteriorations can lower a score.

Many financial institutions follow strict criteria for granting credit and may not extend credit to a person with a FICO Score falling below a range of 600–650 (the exact cut-off point depending on the particular institution). A FICO Score of 700 or higher is generally considered a good credit score, which can help a potential borrower obtain a loan or a credit card.

Want to learn even more about FICO scores? Check out our article “What Does ‘FICO’ Stand For”?

Examples of FICO Score in a sentence

​“Since the FICO® Score was created in 1989, there have been 10 major versions, with the most recent one, FICO 10, announced in January 2020 and set to roll out in summer 2020.”
—”What Is A Credit Score (And Why It Matters)” Rocket Loans. Retrieved March 15, 2020.

“Your FICO® Score is the one that most lenders use; in fact, according to FICO®, more than 90 percent of the top lenders use this score to make their credit decisions.”
—”What Is A Credit Score (And Why It Matters)” Rocket Loans. Retrieved March 15, 2020.

“Because FICO Scores are calculated based on your credit information, you have the ability to influence your score by paying bills on time, not carrying too much debt and making smart credit choices.”
—”What is a FICO® Score?” myFICO. Retrieved August 21, 2020.

How to use FICO Score in a sentence

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