What is a FICO Score?
Believe it or not, creditors used to look at a potential borrower’s credit report and use judgment to decide if the borrower was a good credit risk. There was no credit scoring system. The creditor would review the borrower’s payment history and could see if they were a good borrower.
Several years ago, two men developed a number scoring system which is supposed to represent the credit worthiness of a borrower. Mr. Fair and Mr. Isaac were their names. They had a company called Fair Isaac Company. This is where the name FICO comes from: It is the abbreviation for Fair Isaac Co.
Although it is a good system, it isn’t perfect.
If you have any questions on credit scoring or would like help with increasing your scores I would be happy to help you.