FICO® scores were developed by the Fair Isaac Corporation in order to simplify borrowing and remove bias from the decision-making process. Using advanced mathematics and analytics, Fair Isaac created a formula that rewards good consumer behavior by adding points and admonishes bad consumer behavior by subtracting points from an individual’s credit score. FICO® scores provide a reliable guide to future risk based solely on credit report data.
Each of the three major credit reporting agencies — Equifax, Experian, and TransUnion—use the FICO® formula to determine your credit score. Lenders buy these scores from each of the credit reporting agencies.
