FICO stands for Fair Isaac Corporation. This company is a pioneer and leader in credit scoring. Your FICO score is a number that tells creditors how likely you are to pay off your debts.

FICO and the credit bureaus do not disclose their exact computation methods. However, most credit scores are calculated through models that assign points to different factors of your credit history to best predict future performance. There are many commonly analyzed factors in your credit history, including:

  • Payment history
  • Employment history
  • How long you have had credit
  • How much credit you have used compared to how much you have available
  • How long you’ve lived at your current residence
  • Negative credit/financial events such as collections, bankruptcies, charge-offs, etc.