Which score is developed by Fair, Isaac and Company and is widely used for credit scoring?

The FICO Score is developed by Fair, Isaac and Company and is one of the most recognized credit scoring models used by lenders to evaluate an individual's creditworthiness. This score incorporates various factors from an individual's credit report, such as payment history, amounts owed, length of credit history, new credit, and types of credit used. Lenders greatly rely on the FICO Score when making decisions about loan approvals or interest rates, as it provides a standardized measure of risk associated with lending.

While other scoring models exist, such as the Beacon Score and VantageScore, they are not the primary tools associated with Fair, Isaac and Company. The Beacon Score is specifically a scoring model used by Equifax, one of the major credit bureaus, and VantageScore was developed as a collaboration between the three major credit bureaus—Equifax, Experian, and TransUnion. Understanding the distinctiveness of the FICO Score is essential for anyone in the mortgage industry, especially when helping clients understand their credit profiles.