ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -FICO is perhaps the most recognizable name in credit scores. The Fair Isaac Corporation (now called FICO), which developed the FICO credit scoring algorithm, says its scores are used by 90% of top U.S. lenders in 90% of lending decisions.

Detailed explanation-2: -FICO ® Scores are the most widely used credit scores-90% of top lenders use FICO ® Scores. Every year, lenders access billions of FICO ® Scores to help them understand people’s credit risk and make better–informed lending decisions.

Detailed explanation-3: -FICO credit scores are a method of quantifying and evaluating an individual’s creditworthiness. FICO scores are used in 90% of mortgage application decisions in the United States. Scores range from 300 to 850, with scores in the 670 to 739 range considered to be “good” credit scores.

Detailed explanation-4: -Originally called Fair, Isaac and Company (hence the abbreviation FICO), this name was changed to Fair Isaac Corporation in 2003.

Detailed explanation-5: -The base FICO® Scores range from 300 to 850, and FICO defines the “good” range as 670 to 739. FICO®’s industry-specific credit scores have a different range-250 to 900. However, the middle categories have the same groupings and a “good” industry-specific FICO® Score is still 670 to 739.