A three-digit number that represents a person's creditworthiness. It's based on information in a credit report and ranges from 300 to 850, with higher numbers being better. Lenders use FICO scores to determine how likely someone is to repay a loan, which affects how much credit they can offer, how many months they have to repay, and the interest rate. FICO scores are considered a fair and reliable measure of whether someone will pay back a loan on time.
The Fair Isaac Corporation (FICO) calculates FICO scores using a number of credit-scoring models, including industry-specific models. Many creditors use FICO scores to assess applicants, manage accounts, and determine rates and terms.