What does FICO stand for? FICO is the name of the corporation that introduced the widely used FICO credit score.
In this article, we’ll provide all the details you need to know about FICO, along with key dates and answers to questions about the FICO score.
This article is part of our free series on credit products, including how to get a US credit card with an ITIN number, which you can access here.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- What Does FICO Stand For?
- What Is the Difference Between FICO and Credit Score?
- Frequently Asked Questions
- Ready to Open Accounts With Banks in the USA?
What Does FICO Stand For?
FICO stands for the “Fair Isaac Corporation”, founded in 1956 by William Fair (engineer) and Earl Isaac (mathematician).
FICO is best known for being the company that developed the widely used FICO credit score in 1989, meaning they offer a scouring model to assess a borrower’s creditworthiness for lenders. The FICO credit score is based on credit history, payment behavior, debt levels, and more.
Of course, each financial institution still needs to conduct its own risk assessment to determine the loan eligibility of an applicant. But, the FICO score plays an important role in this assessment process.
Credit card providers do perform hard inquiries and how long hard inquiries stay on your credit report depends on various factors, which you can learn more about by accessing our free guide linked here.
What Is the Difference Between FICO and Credit Score?
The main difference between the FICO score and credit score is that the FICO score refers to the credit score calculated by the Fair Isaac Corporation while “credit score” is a broad term that encompasses all methods for scoring a person’s creditworthiness. That said, FICO score and credit score are often used interchangeably.
Do You Want More USA Banking Insights?
Sign up here to receive our Free USA Banking Starter Guide. It’s designed to help non-residents with opening bank accounts at top financial institutions in the US.
Frequently Asked Questions
Below are four of the most common questions we receive from people looking into what FICO stands for. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
What Are FICO Scores?
FICO scores are a mathematical assessment of a person’s creditworthiness, as determined by FICO (the Fair Isaac Corporation). The FICO score involves a range between 300 and 850, with higher scores reflecting stronger creditworthiness. Not surprisingly, lenders prefer to lend to individuals with higher credit scores while lower credit scores may have fewer options and receive less attractive terms.
What Does the FICO Acronym Stand For?
The FICO acronym stands for “Fair Isaac Corporation”. The Fair Isaac Corporation was founded in 1956 by the mathematician Earl Issac and the engineer William Fair. But, it wasn’t until the 1980s that the company started to use the shorter acronym FICO to represent the corporation.
What Does FICO Credit Score Mean?
FICO credit score means the credit score assigned to an individual, reflecting their creditworthiness as a prospective borrower. The FICO score ranges between 300 and 850, with higher scores reflecting strong creditworthiness.
What Is a Good FICO Credit Score?
In general, a “good” FICO credit score is one that is in the range of 670 to 850. Of course, the higher the score, the stronger an individual’s creditworthiness will be. Likewise, the lower the score is, the weaker an individual’s creditworthiness will be.
Ready to Open Accounts With Banks in the USA?
If so, you can get access to GlobalBanks USA (our dedicated US banking service) in just a few clicks.
GlobalBanks USA is a 100% personal account opening solution. It provides direct access to our team of US banking experts.
When you join, you receive…
+ Expert suggestions on where to open US bank accounts.
+ Step-by-step support to navigate opening US bank accounts.
+ Direct introductions to helpful and responsive bankers.
+ Plus, detailed guides to maximizing the value you get from your new US bank account.
And “yes!” GlobalBanks USA helps foreigners and non-resident individuals open bank accounts.
In fact, GlobalBanks USA even helps non-resident US LLCs and foreign & offshore entities.
To learn more about GlobalBanks USA, visit the product page to see how our team can help you successfully open US bank accounts!