FICO Scores: Powering credit decisions worldwide

Credit scores play a vital role in determining access to credit and economic opportunities around the world.

FICO, a pioneer in credit risk assessment, has been at the forefront of this field since its inception in 1956.

Revolutionising credit risk assessment

The introduction of the FICO® Score in 1989 marked a turning point.

This objective and unbiased creditworthiness assessment revolutionized credit markets in the United States, becoming the industry standard adopted by 90% of top lenders.

Furthermore, FICO Scores have been implemented in over 40 countries globally.

“FICO Scores act as catalysts for economic growth,” said Julie May, a FICO vice president.

“By leveraging credit report data, these scores enable better allocation of credit resources, ultimately increasing consumer access to financial tools.”

FICO Scores: Benefits for consumers and lenders

FICO Scores serve a dual purpose. For consumers, they offer a data-driven pathway to credit access. For lenders, they simplify complex credit report data and provide fair, objective assessments based solely on credit history.

“These scores are fundamental to a modern market economy,” May continued. “They remove human bias from the equation and provide a consistent, predictive measure of credit risk.”

Erick Hamburger, CEO of CTOS Digital, elaborates on the benefits of credit scores. “They keep credit costs lower for everyone,” he explains.

“The more accessible credit is, the more efficiently lenders can operate, passing on savings to borrowers. Credit scores are one tool used by lenders in conjunction with other data points.”

Fostering financial inclusion

FICO-developed credit scores rank borrowers based on their credit history, typically ranging from 300 to 850. Higher scores indicate responsible credit management and lower risk.

These scores offer lenders a comprehensive view of potential borrowers and are designed for transparency, providing reasons behind the score calculation.

FICO actively collaborates with credit bureaus worldwide to promote financial inclusion. For example, FICO® Scores have facilitated millions of credit decisions in Mexico, expanding access to financial tools.

Additionally, FICO recently partnered to make FICO® Scores accessible to lenders in Poland, aiding displaced Ukrainians seeking credit.

In Malaysia, the CTOS Score, powered by FICO, promotes responsible lending practices and informed borrowing, contributing to economic growth.

FICO and CTOS are committed to improving financial literacy and ensuring responsible use of credit scores. This education empowers consumers to navigate the credit landscape confidently, fostering financial inclusivity and promoting responsible credit access.

By providing a fair and objective credit assessment system, FICO Scores play a crucial role in shaping economies worldwide. Their focus on transparency, education, and inclusion ensures responsible credit access for all.