A credit score is a number that represents an estimate of an individual's financial creditworthiness

as calculated by a statistical model.


Credit Score Info


A credit score attempts to quantify the likelihood that a prospective borrower will fail to repay a loan or other credit obligation satisfactorily.

A credit score is based on a subset of the information in an individual's credit report. Lenders such as banks and credit card companies use credit scores to manage the risk posed by lending money to consumers.

Examples of such uses include determining who qualifies for a loan, assigning an interest rate, assigning credit limits, and managing accounts that are already open (for example, treatment of accounts that are in default).

The use of credit or identity scoring prior to authorizing access or granting credit is an implementation of a trusted system.

ICO, an acronym for Fair Isaac Corporation


(traded publicly under the symbol FIC) often refers to the best-known credit score in the United States which is calculated using mathematical formulae developed by this company. This score is one of the most important factors in obtaining credit in the United States. For institutions that use scores as a factor in their lending decisions, scores below certain numbers (typically set by each lender's risk management department) may result in denial of credit, or credit being offered at a higher interest rate.

The three major credit reporting agencies in the United States, (Equifax, Experian and Trans Union) calculate their own versions of this score, which goes by different trademark names at each credit bureau: Beacon at Equifax; Empirica at Trans Union, and Fair Isaac Risk Score at Experian. These versions, while all developed for the agencies by Fair Isaac, are believed to differ slightly. Fair Isaac also offers multiple variations on their popular score, for example "Classic" FICO or "Next Gen" FICO.

FICO Credit Score | CRDIT Report | WWWCreditScore