What does credit score mean?
Fair, Isaac and Company of California in 1956 pioneered the field of Credit Scoring for financial institutions. Today, every credit agency and most lenders calculate your credit score (FICO) using their software. The homogeneous scoring system provides lenders a “picture” of your credit health. Number of accounts, payment performance, number of inquires, etc. is formulated to produce a three digit score between 300 and 950. Your FICO score determines level of lender risk. The lower the FICO score, the higher the risk. The higher your FICO score, the lower the risk.