FICO
Business & Finance abbreviation · Personal Finance
| Stands for | Fair Isaac Corporation credit score |
|---|---|
| Categories | Business & Finance |
FICO stands for Fair Isaac Corporation credit score, a personal finance abbreviation.
Most widely used US credit score, ranging from 300 to 850 and calculated from credit report data to predict how likely a borrower is to fall 90 days behind on a payment. Payment history and amounts owed carry the most weight, followed by length of history, new credit and credit mix.
Example: Your FICO score dropped 40 points after the missed payment, so the lender raised your rate quote.
Usage notes
Named after Fair Isaac Corporation, founded in 1956 by engineer Bill Fair and mathematician Earl Isaac; the general-purpose FICO score launched in 1989. Pronounced "FY-koh." Lenders use many versions, such as FICO Score 8 and industry-specific auto and bankcard scores, so one consumer can have several different numbers. The main rival model, VantageScore, was created by the three credit bureaus in 2006.
Related abbreviations
More personal finance abbreviations
- DTI – Debt-to-income ratio
- EMI – Equated monthly installment
- EPF – Employees' Provident Fund
- ESA – Coverdell education savings account
- FERS – Federal Employees Retirement System
- FHSA – First Home Savings Account
- FIRE – Financial independence, retire early
- FRA – Full retirement age
- FSA – Flexible spending account
- HCOL – High cost of living
- HSA – Health savings account
- HYSA – High-yield savings account