10AM - 7PM

Weekdays

Truth about Credit/FICO Scores

2 Jul    Credit Scores

FICO (NYSE: FICO) is a leading analytics software company, helping businesses in 90+ countries make better decisions that drive higher levels of growth, profitability and customer satisfaction. This is stated right on their web site.  This statement refers to businesses who use their service.

FICO at a Glance

FICO’s groundbreaking use of Big Data and mathematical algorithms to predict consumer behavior has transformed entire industries. The company provides analytics software and tools used across multiple industries to manage risk, fight fraud, build more profitable customer relationships, optimize operations and meet strict government regulations.

A History on FICO

1956 -Engineer Bill Fair and Mathematician Earl Isaac founded FICO – with an initial investment of $400 each – on the principal that data used intelligently, can improve business decisions.

1958 – FICO builds its first credit scoring system for American Investments.

1972 – ASAP, the first automated application processing system, debuts at Wells Fargo.

1981 – Bill Fair and Earl Isaac along with the rest of the FICO team, introduces the first FICO credit bureau risk scores.

1995 – Fanie Mae and Fannie Mac recommend use of FICO scores in evaluation US mortgage loans.

2005 – 10 millionth score sold to US consumers through my fico.com and partners.

2013 – Makes FICO scores available to millions of consumer through FICO score open access program.

 

What makes up the FICO Score:

SO the above information tells you more about the company at a glance and its history.. The pie chart is basically the main focus on the FICO score.  The all mighty FICO gods do not help nor determine your level of wealth at all.  It is strictly a measurement tool using you history of debt in order to see if you are qualified for even more debt.  FICO Score equals the 
I love Debt Score”.

In forthcoming posts, I will be writing a step by step way to organize your personal finances, become current on your financial obligations, start buildings your initial emergency fund, begin your debt free process, and then return to building your fully funded emergency fund of 10 months of expenditures.

Leave a Reply