FICO

From Wikipedia, the free encyclopedia
Jump to navigation Jump to search
For other uses, see FICO (disambiguation).
Fair Isaac Corporation
FICO
Company typePublic
IndustryData analytics
Founded1956; 70 years ago (1956) (as Fair, Isaac, and Company)
Founders
HeadquartersBozeman, Montana, U.S.
Area served
Worldwide
Key people
William Lansing (CEO)[1]
ProductsFICO score
ServicesComputer software
RevenueIncrease US$1.99 billion (2025)
Increase US$925 million (2025)
Increase US$652 million (2025)
Total assetsIncrease US$1.87 billion (2025)
Total equityDecrease −US$1.7 billion (2025)
Number of employees
3,811(2025)
Websitefico.com
Footnotes / references
[2]

FICO (legal name: Fair Isaac Corporation), originally Fair, Isaac and Company, is an American data analytics company based in Bozeman, Montana, focused on credit scoring services. It was founded by Bill Fair and Earl Isaac in 1956.[3] Its FICO score, a measure of consumer credit risk,[4] has become a fixture of consumer lending in the United States.

In 2013, lenders purchased more than 10 billion FICO scores and about 30 million American consumers accessed their scores themselves.[5] The company reported a revenue of $1.29 billion for the fiscal year of 2020.[6]

History

[edit | edit source]

FICO was founded in 1956 as Fair, Isaac and Company by engineer William R. "Bill" Fair and mathematician Earl Judson Isaac.[7] The two met while working at the Stanford Research Institute in Menlo Park, California.[8] Selling its first credit scoring system two years after the company's creation,[9] FICO pitched its system to fifty American lenders.[10]

FICO went public in July 1987[11] and is traded on the New York Stock Exchange.[7] The company debuted its first general-purpose FICO score in 1989.[4] FICO scores are based on credit reports and "base" FICO scores range from 300 to 850,[4] while industry-specific scores range from 250 to 900.[12]

Lenders use the scores to gauge a potential borrower's creditworthiness.[13]

Fannie Mae and Freddie Mac first began using FICO scores to help determine which American consumers qualified for mortgages bought and sold by the companies in 1995.[14]

Name changes

[edit | edit source]

Originally called Fair, Isaac and Company (hence the abbreviation FICO), this name was changed to Fair Isaac Corporation in 2003.[9]

Headquarters moves

[edit | edit source]

Originally based in San Rafael, California, FICO moved its headquarters to Minneapolis, Minnesota, in 2004, a few years after Minnesota resident Thomas Grudnowski took over as CEO.[15] In 2013, it moved its headquarters to San Jose, California, a year after CEO William Lansing joined.[16] In 2016, it opened an office in Bozeman, Montana, which later[when?] became its headquarters.[17]

Acquisitions

[edit | edit source]
  • DynaMark 1992[18]
  • Risk Management Technologies 1997[19]
  • Prevision 1997[20]
  • Nykamp Consulting Group 2001[21]
  • HNC Software 2002[22]
  • NAREX 2003[23]
  • Diversified Healthcare Services 2003[24]
  • Seurat (2003)[25]
  • London Bridge Software 2004[26]
  • Braun Consulting 2004[27]
  • RulesPower 2005[28]
  • Dash Optimization 2008[29]
  • Entiera 2012[30]
  • Adeptra 2012[31]
  • CR Software 2012[32]
  • Infoglide 2013[33]
  • InfoCentricity 2014[34]
  • Karmasphere 2014[35]
  • TONBELLER AG 2015[36]
  • QuadMetrics 2016[37]
  • GoOn 2018[38]
  • EZMCOM 2019[39]

Antitrust issues

[edit | edit source]

In March 2020, the US Department of Justice (DOJ) opened an antitrust investigation into FICO, which was reported to be closed in December 2020.[40][41] In March 2024, US Senator Josh Hawley sent a letter to the DOJ's Antitrust Division urging them to open an investigation into FICO for anti-competitive practices, stating that the company "appears to be using its monopolistic power over the credit scoring market to increase costs for mortgage lenders."[42][43][44]

Between 2020 and 2023, at least 10 antitrust class action lawsuits were filed against FICO involving "business to business" purchases of FICO scores, with the plaintiffs alleging that FICO maintains monopoly power through anticompetitive agreements and charges artificially inflated prices for FICO scores.[45][46] In September 2023 US District Judge Edmond Chang ruled that the plaintiffs, which include credit unions, banks, mortgage lenders, real estate brokerages, auto dealers, and other companies, had presented enough evidence that FICO had violated antitrust law to allow the lawsuits to proceed.[45][46]

Operations

[edit | edit source]

FICO is headquartered in Bozeman, Montana and it has additional U.S. locations in San Jose, California, Roseville, Minnesota, San Diego, California, San Rafael, California, Fairfax, Virginia, and Austin, Texas.[47]

The company has international locations in Australia, Brazil, Canada, China, Germany, India, Italy, Japan, South Korea, Lithuania, Malaysia, the Philippines, Poland, Russia, Singapore, South Africa, Spain, Taiwan, Thailand, Turkey, and the United Kingdom.[47]

FICO score

[edit | edit source]
Main article: Credit score in the United States § FICO score
See also: Criticism of credit scoring systems in the United States

A measure of credit risk, FICO scores are available through all of the major consumer reporting agencies in the United States: Equifax, Experian, and TransUnion.[48] FICO scores are also offered in other markets, including Mexico and Canada,[49] as well as through the fourth U.S. credit reporting bureau, PRBC.[50]

References

[edit | edit source]
  1. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  2. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  3. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  4. ^ a b c Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  5. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  6. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  7. ^ a b Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  8. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  9. ^ a b About Us | FICO — FICO official Web site
  10. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  11. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  12. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  13. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  14. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  15. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  16. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  17. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  18. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  19. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  20. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  21. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  22. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  23. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  24. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  25. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  26. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  27. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  28. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  29. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  30. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  31. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  32. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  33. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  34. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  35. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  36. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  37. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  38. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  39. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  40. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  41. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  42. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  43. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  44. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  45. ^ a b Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  46. ^ a b Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  47. ^ a b Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  48. ^ Credit Reporting Agencies — FICO official Web site
  49. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  50. ^ Fair Isaac and PRBC Team Up to Enhance Credit Risk Tools Used by Mortgage Industry — FICO official Web site
[edit | edit source]
  • Lua error in Module:Official_website at line 94: attempt to index field 'wikibase' (a nil value).
  • Business data for Fair Isaac Corporation:
  • How Does FICO Calculate a Score?

Lua error in Module:Authority_control at line 153: attempt to index field 'wikibase' (a nil value).

Retrieved from "http://70.231.62.181/index.php?title=FICO&oldid=1003747"