how fico scores work
fico is a major analytics software company that provides products and services to both businesses and consumers the company is best known for producing the most widely used consumer credit scores that financial institutions use in deciding whether to lend money or issue credit fico scores are used in many credit decisions made in the u s although borrowers can explain negative items in their credit report many lenders will deny loans to people with low fico scores many lenders maintain strict fico minimums for approval particularly in the mortgage industry one point below this threshold can result in a denial fico score rangesthe overall fico score range is between 300 and 850 in general scores in the 670 to 739 range indicate a good credit history and most lenders will consider this score favorable in contrast borrowers in the 580 to 669 range may find it difficult to get financing at attractive rates to determine creditworthiness lenders take a borrower s fico score into account but they also consider other details such as income how long the borrower has been at their job and the type of credit requested 