A FICO® Score stands for the Fair Isaac Corporation, or the first company that created a universal scoring model for credit. This method of ranking people based on their credit usage is used by 90% of U.S. lenders today. FICO Scores are reported on a scale from 300 to 850. Lower scores indicate a higher credit risk to lenders, while a higher score means you are less of a credit risk and are more likely to be approved from credit and better interest rates.
FICO Scores are comprised of your payment history, the amount of money you owe as compared to the amount of credit you have available, the length of your credit history, how much new credit you’ve recently applied for, as well as your credit mix to reach your FICO Score.