The Origins of FICOFirst of all, let’s briefly discuss the origins of FICO (Fair Isaac Corporation). Back in 1956 many were introduced to credit scoring by two pioneers in the field: engineer Bill Fair and mathematician Earl Isaac. Over the years, the pair convinced lenders that mathematical formulas could do a better job of predicting whether an applicant would default than even the most experienced loan officers. Thus, the birth of your FICO score.Understand that there are now many different … [Read more...]
What Is A Good Credit Score?
We have all seen the advertisements, such as: “0% APR”, or “No interest, no payments for 90 days”, or “90 days same-as-cash” offers. Then the kicker (On Approved Credit). So what EXACTLY does this mean to you and I? What Is A Credit Score? A credit score is the mathematical opinion about your ability to repay any loan generated by a credit scoring company. There are many different credit scoring companies out there, all of them use their own proprietary mathematical credit scoring algorithms … [Read more...]
