A FICO score is a particular brand of credit score created by the Fair Isaac Corporation (FICO) . It is a three-digit number based on the information in your credit reports, and it helps lenders determine how likely you are to repay a loan. FICO scores range from 300-850, and a higher score makes it easier to obtain credit. FICO scores take into account data in five areas to determine a borrowers creditworthiness: payment history, the current level of indebtedness, types of credit used, length of credit history, and new credit accounts.

FICO was a pioneer in developing a method for calculating credit scores based on information collected by credit reporting agencies. Today, other companies also have credit scoring formulas (“models”), but most lenders still use FICO scores when deciding whether to offer you a loan or credit card, and in setting the rate and terms. FICO also has different variations of its basic scoring model tailored to different types of lenders (for example, home loans or car loans) .

It is important to note that different FICO scores and other credit scores were created using different scoring models, so the scores may not be identical. However, FICO scores are used in 90% of mortgage application decisions in the United States.