What is a FICO score?
Back in 1956, an engineer named William Fair and a mathematician named Earl Isaac came up with a formula to calculate the first credit scoring system. This calculation measures a consumer’s credit risk and has become a fixture in consumer lending in the United States now known as FICO.
The company started as Fair Isaac and Company named after the founders William Fair and Earl Isaac. The company released the first FICO score in 1989. In 2003, the name was changed to Fair Isaac Corporation and in 2009, was finally rebranded as “FICO”.
How do mortgage lenders use your FICO score?
To lenders, scores are based on credit reports and credit reports range from 300-850. Lenders use the scores to gauge potential borrower’s credit worthiness. Be sure to monitor your credit and always work to increase your FICO score.
Did you know?
In 2013, mortgage lenders purchased more than 10 billion FICO scores and about 30 million American consumers accessed their credit scores themselves.
For more helpful mortgage lending and finance tips, visit gmfsmortgage.com/resources