FICO® score is a type of credit score created by the Fair Isaac Corporation (FICO®). FICO® is the most common credit-scoring model used by creditors.
According to this model, the higher a consumer's FICO score, the less likely they are to default on the loan.
The FICO® score is determined by five factors using the information in the credit reports:
- Payment history;
- How much debt is owed;
- Length of credit history;
- How much new credit the consumer has; and
- The types of credit borrower currently have in use.