If you’re inquiring about the “Fair Isaac credit score,” you’re probably working with some outdated information (or talking to your grandparents).
Fair Isaac Corporation is the former name and acronym of “Fico,” which is quite obviously the company behind the all-powerful Fico score.
The name Fair Isaac is based on its creators, Bill Fair and Earl Isaac.
The company changed their name to Fico back in early 2009 as a way to “simplify things.” And probably also as a branding strategy, given the fact that most consumers are familiar with the phrase “Fico score,” but not much “Fair Isaac.”
So if you’re looking for your Fair Isaac credit score, you’re really looking for your Fico score.
As noted, the Fico score is the leader of the pack, with much more market share than the lesser known VantageScore, which was recently fairly created by the credit reporting agencies themselves.
It’s used by pretty much all lenders to determine your creditworthiness, so it’s very important to ensure your Fico score stays in good standing.
The keys to this are paying on time, keeping balances low, and applying for new credit sparingly.
(How to improve your credit score.)
That doesn’t mean you can’t apply for credit cards and take out auto/home loans, it just means to show some restraint when doing so.
After all, the more credit you’ve got outstanding, the more you are seen as a credit risk, even if you have plenty of cash in the back and no problem paying off all the associated loans.
Keep in mind that the credit score scale for Fico is 300-850, with higher scores representing lower credit risk.
The average Fico score was said to be 711 (per 2009 data), so if you’re in the 720+ range you’ve probably got a good credit score, and anything over 760 is probably considered an excellent credit score.
Conversely, a bad credit score with regard to Fico (Fair Isaac) would be something below 620.