FICO is the most common credit scoring model. Its latest version looks at your monthly credit balances

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Your FICO score may be slightly different at each credit bureau.

Developed by the Fair Isaac Corporation, FICO is the oldest and most widely used credit scoring model.
Your payment history and accounts owed are the most important factors in calculating your credit score.
FICO 10T, the latest generation of the credit scoring model, takes into account your monthly credit balances over the last 24 months.

If a lender is looking at your credit score, chances are, they’re looking at your FICO score. This helps financial institutions and lenders determine your creditworthiness and set interest rates or loan terms that correspond to your score. Credit scores range from 300 (extremely poor, very limited credit opportunities) to 850 (excellent credit opportunities) and fluctuate based on a variety of things, such as late payments, debt-to-credit ratio, accounts in collections, the age of your credit accounts, and more.

The three credit bureaus — Experian, TransUnion, and Equifax — each establish a credit score for consumers based on your purchase and payment history, and those scores use the FICO scoring system.

What is a FICO score?

FICO is a credit scoring model, which reflects information on your credit report and condenses it into a single three-digit number. It’s named after Fair Isaac Corporation, the company that first created the numeric credit-scoring system in 1989. Though the data analytics company renamed the company to FICO in 2009.

As a three-decade-old credit scoring model, FICO is the most widely used scoring model 0n the market. FICO estimates that about 90% …read more

Source:: Businessinsider

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