What is a FICO® credit score?

A FICO® credit score is a widely recognized credit scoring model developed by Fair Isaac and Co., commonly known as FICO. This scoring system, introduced in 1989, is used by 90% of banks and creditors today. However, the origins of credit scoring models by FICO can be traced back to 1958 when Fair Isaac and Co. created Credit Application Scoring Algorithms.

FICO calculates its base scores within the range of 300 to 850. Within this range, there are five different categories with the following indications: 800-850 (Excellent), 740-799 (Very Good), 670-739 (Good), 580-669 (Fair), and 300-579 (Poor).

It’s worth noting that FICO periodically releases different versions of its scoring models. As a result, even if two agencies or lenders use FICO scores, they might be using different versions, which can lead to slight differences in credit scores. Additionally, FICO provides industry-specific scores for auto lenders and credit card companies, such as the Auto Score and Bankcard Score, which have a scoring range of 250 to 900.