Fair Isaac stands for FICO, the Fair Isaac Corporation that sets the standard for how an individual is rated concerning credit. There are 3 credit rating agencies that use FICO scores which range from the 300′s to 850. The agencies are TransUnion, Experian and Equifax. The higher the score, the better the credit.
A FICO score of 750 and above is considered an excellent credit rating. (Click here to get your free credit score)
Mr. Fair and Mr. Isaac were mathematicians that discovered a way to rate a person’s credit. However, there is a weak element in the process. If you have a so-called “thin folder,” or “thin file“, meaning a small credit history, you will be rated higher than someone with perhaps one negative point, but in possession of a substantial credit history, though the 3 agencies usually give different ratings.
Click for the full glossary of credit card terms.
