What is a FICO Score or a FICA Score?
Often consumer credit scores are called “FICO scores.” Occasionally the term “FICA Score” is used, but this terminology is incorrect. FICA refers to a federal income tax and FICO is the term used regarding an individuals personal credit score. The term “FICO” is used because most credit bureaus utilize a software developed by Fair Isaac and Company to calculate this numerical value. FICO scores provide a guide to the future risk of a loan based solely on credit report data. Lenders use FICO scores in combination with other information provided to them by an applicant, such as income and employment information, to assist them in determining whether an applicant is a high or low risk. document.getElementById(‘adsense_placeholder_2’).innerHTML = document.getElementById(‘adsense_ad_2_hidden’).innerHTML; Other Names for FICO Scores Each of the three main credit reporting agencies use a different name for their brand of credit score products. Equifax calls their score a Beacon Score. Experia
