Oct 12

FICO, Fair Isaac Corporation

FICO (Fair Isaac Corporation) is a leading analytics software company, helping businesses in 90+ countries make better decisions that drive higher levels of growth, profitability and customer satisfaction. The company’s groundbreaking use of Big Data and mathematical algorithms to predict consumer behavior has transformed entire industries.

FICO was established back in 1956 by engineer Bill Fair and mathematician Earl Isaac. The purpose for the business was that data uses integrity to help business decisions. Two years later, FICO build its first credit scoring system. In 1972, Wells Fargo Bank debuted the first automated application processing system.

Finally in 1981, Bill Fair and Earl Isaac, along with the rest of the FICO team, introduce the first FICO credit bureau risk score. These scores were made available in 1991 to all three major US credit reporting agencies. Fannie Mae and Freddie Mac came into the credit score business in 1995 to evaluate US mortgage loans. In 2009, Fair Isaac Corporation rebranded itself to what it is today.

So to some it up, FICO is a company that provides cloud based software services to the credit bureaus and companies that are affiliated to the bureaus to assess the risk of a consumer in their financial needs. FICO today is headquartered in San Jose.

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FICO is NOT an indication of wealth:

Here is a audio clip from the Dave Ramsey Show with a honest rant on how the average consumer relies on this score for their financial decisions.

Video Courtesy: Ramsey Solutions – How does FICO Work?