FICO is the acronym for Fair Isaac Corporation, as well as the name for the credit scoring model that Fair Isaac Corporation developed. A FICO credit score is a tool used by many lenders to determine if a person qualifies for a credit card, mortgage, or other loan. FICO scores also determine the interest rates a person would pay or their credit limit. Higher scores generally correlate to a better likelihood of getting a loan, and better interest rates for those loans. Scores range from 300 to 850. A score below 579 is deemed “poor,” and persons with this score are viewed as risky. A “fair” credit score is any between 580-669, “good” between 670-739, and “very good” for 740-799. Those with an 800 or above are deemed “exceptional.”
[Last updated in August of 2021 by the Wex Definitions Team]
