FICO is an acronym for Fair Isaac Corporation. This is a credit score model and it is best known in the US as credit score. In the United States, it is said that it is the best scoring system that exist. This is the score used by the largest banks in US in approving the loans and credit applications of their clients.
FICO score meaning is not really a credit rating but it is a ranking if you are allowed to make a credit. It was in the year 1989 that the Fair Isaac group made this credit score model. After a decade, Fair Isaac Corporation made a contract between the credit reporting agencies and they are not allowed to disclose the scores without the agreement of both parties.
It was in 2001 that the corporation released the Equifax FICO score "BEACON" and allowed customers to access their rankings. Presently, almost every individual who wants to learn about FICO score will have access through the Internet.
The question is, "What is FICO score meaning?" Aside from the fact that it is an acronym, what is FICO score about? How high and how low is the FICO score of a client?
FICO score is the determinant if a credit applicant is qualified to apply for a credit or loan. There is a provided range to efficiently evaluate your credit score. Below is the range of credit score divided into good, low and bad FICO score. You can check credit score ratings to see where you are at.
620-850 (GOOD FICO SCORE) â A credit score of 700 and above means excellent. With a credit score above 700, you will be given better rates and discounts by the banks. For credit score 680 to 699, you will be approved of the usual loan but there will be no offers of better discounts. For range 620 to 679, your loan will not be denied and they will still be nice with you, but the loan officers would not be generous in terms of discounts.
580-619 (LOW FICO SCORE) â Banks and brokers say that this is the range where the bad credit starts. Banks would love to deal and do business with clients with this credit score since their loans will be approved, but of the terms given by the banks. Loan officers will have more commissions in the process. Mostly, the clients with this credit score will eventually agree since they don't have many choices to choose from.
579 and below (BAD FICO SCORE) â For range 500 to 580, the true difficulty starts. You will still get your loan but you know that the terms are very bad. But you still prefer to accept the conditions since it could be a chance to increase your score. If your credit score is below 500, the terms offered to you will be very cruel. It is better if you repair your bad credit before having another loan.
FICO score meaning definitely depends on your actual score. If you have a score higher than 620, meaning you will certainly have good offers and discounts. Having a score below 620, means you will be robbed and won't enjoy discounts and better rates. The only way for me to tell where I fit in is to check my credit score.