FICO is short for FICO score.
A FICO score, named after the Fair Isaac Corporation, is a three-digit number ranging from 300 to 900 that lenders use to evaluate an individual's creditworthiness.
It's calculated based on credit reports and reflects payment history, amounts owed, length of credit history, new credit, and types of credit used.
Higher scores indicate lower credit risk, often leading to better mortgage terms. Lenders often use this score to decide on loan approvals and interest rates, making it a critical number in personal finance.
The average Canadian's FICO score in 2023 was 762, up five points since 2018.