What does FICO stand for? FICO comes from Fair Isaac Corporation, the analytics company that created the FICO Score, one of the credit scores lenders in the United States rely on most. The company began in 1956 as Fair, Isaac and Company, named for its founders, engineer Bill Fair and mathematician Earl Isaac. Today the company goes by FICO as its main name.
When a loan officer or a car dealer mentions "your FICO," they mean the three-digit number that sums up your credit history. It usually runs from 300 to 850, and a higher number tells lenders you have handled borrowed money well in the past.
Quick facts
Stands for
Fair Isaac CorporationType
Acronym, said as a wordHow to say it
FY-kohStarted
1956, as Fair, Isaac and CompanyScore range
Usually 300 to 850Used in
Mortgages, car loans, credit cards, apartment rentalsRelated terms
Credit report, credit bureau, APR
FICO stands for a company, not a phrase
Unlike many money terms, FICO is not built from a description such as "financial credit" or similar. The letters come straight from a company name:
| Letters | From |
|---|---|
| F | Fair, for co-founder Bill Fair |
| I | Isaac, for co-founder Earl Isaac |
| CO | Company, later Corporation |
Spoken as the single word FY-koh, FICO behaves like a true acronym. Over time the short name became better known than the full one, and "FICO" turned into everyday shorthand for a credit score.
What the FICO Score measures
The score is calculated from information in your credit report. FICO publishes the general weight of each factor for most people:
| Factor | Share | What it looks at |
|---|---|---|
| Payment history | About 35 percent | Whether bills were paid on time |
| Amounts owed | About 30 percent | How much of your available credit you use |
| Length of credit history | About 15 percent | How long your accounts have been open |
| New credit | About 10 percent | Recent applications and new accounts |
| Credit mix | About 10 percent | The variety of loans and cards you have |
Your income, job and savings are not part of the score itself, though a lender may ask about them separately.
What does FICO stand for on a loan application?
On a loan form or a lender's website, FICO refers to your score, not the company. A lender might write "minimum FICO 620" to show the lowest score it accepts for a certain loan. The number helps decide whether you are approved and what interest rate you get, which in turn affects your APR.
Car loan offer: "Best rates for buyers with a FICO of 720 or higher." The dealer is saying that buyers with strong credit scores qualify for the lowest interest rates.
Landlords, insurers in some states and phone companies may also check credit, though they do not always use a FICO model.
Why you may have more than one FICO Score
Your score can differ from one place to another. There are several versions of the FICO Score, including ones made for mortgages, car loans and credit cards. Each of the three major credit bureaus also keeps its own report on you, and small differences in those reports can shift the number. Seeing a 702 in one place and a 715 in another is normal.
Ways people try to raise a FICO Score
- Pay every bill on time, since payment history counts most.
- Keep card balances low compared with their limits.
- Keep older accounts open when it makes sense.
- Apply for new credit only when you need it.
- Check your credit reports for mistakes and dispute errors.
Changes usually take months, not days. A single late payment can lower a score quickly, while rebuilding it is slow. Explore related money terms on the business acronyms hub, such as HELOC and FHA.
Writing and saying FICO
Write it in capitals. People say it "FY-koh," with the first part sounding like "fly" minus the l. Because it starts with a consonant, the article is "a": "a FICO Score of 690." In casual speech, "my FICO" and "my credit score" are often used interchangeably.
Questions people ask
What is a good FICO Score?
Lenders often treat scores in the high 600s and above as good, and scores in the upper 700s and 800s as very strong. Each lender sets its own cutoffs, so the label can vary.
Is FICO the same as a credit score?
A FICO Score is one brand of credit score, and it is the one many lenders use. Other scoring models exist, so not every credit score you see is a FICO Score.
Who created FICO?
Bill Fair and Earl Isaac founded the company in 1956. The name FICO comes from Fair Isaac.
Does checking my own FICO Score lower it?
No. Checking your own score is a soft inquiry and does not affect it. Applying for new credit can cause a hard inquiry, which may lower the score a little for a while.
How do you pronounce FICO?
Say it as one word, FY-koh. Spelling out the letters is uncommon.