Why the FICO Scores was created?
The Fair Isaac Corporation, known as FICO, created the first credit scoring system in 1958, for American Investments, and the first credit scoring system for a bank credit card in 1970, for American Bank and Trust. Because a score does not consider race, sex or ethnicity, it is generally considered to be the most fair and objective underwriting tool available to lenders. The Federal Reserve Board did a study that noted scores have increased the availability of credit and reduced the cost of credit. Scores have also proven to be very predictive in assessing risk management for the lenders!
FICO was founded in 1956 as Fair Isaac by engineer Bill Fair and mathematician Earl Isaac, provides consulting services and enterprise decision management systems. They developed the FICO scores System to measure of credit risk of any potential credit applicant, FICO scores are the most used credit scores sytem in the world!
FICO scores are available through all of the major consumer reporting agencies Equifax, Experian, and Trans Union in the United Statesand Canada and some countries world wide!
This is just FYI only!
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