Definition of Fico Score

Fair Isaac Corporation or FICO is an organization that builds the credit score of borrowers that lenders use to rely upon the score and extend the credit when requested by the borrower. The FICO uses other credit details related to borrowers in order to assess the real credit score before channeling it to a lender.

The FICO score is determined based on some important factors. The first one is the borrowers’ payment history. If the buyers do not delay or skip any payments, they get a good score. Also, the existing debt level is assessed to make sure that the borrower has the ability to meet its payments. Other important factors can be the length of time of credit history, number of credit accounts in operation and types of credit facilities used.