Where Did FICO Come From? The Origins of Your Credit Score

W2 Capitalist | For BRRRR-ing, Married, Busy Parents

Have you ever wondered where the FICO credit score system came from? It’s easy to assume it’s always been a part of the financial world, but the reality is far more interesting. In this episode, we journey back to 1956, when two engineers, Bill Fair and Earl Isaac, saw a flawed system where credit decisions were based on personal judgments, biases, and inconsistent practices. Determined to change the game, they founded Fair, Isaac, and Company—now known as FICO—on the principle that data, not opinions, should drive financial decisions.

We’ll explore how their vision took over three decades to fully materialize, leading to the creation of the FICO score in 1989. By standardizing creditworthiness evaluations, Fair and Isaac’s system brought transparency and consistency to the credit world—benefiting both lenders and consumers. But like any system, FICO isn’t perfect. While it has leveled the playing field for many, it also encourages certain behaviors and can feel like a complex puzzle.

Join me as we uncover the history of FICO, its impact on lending and borrowing, and how understanding its roots can help you use it to your advantage—especially when pursuing those low rates for your next BRRRR deal. Stick around for a sneak peek at upcoming episodes where I’ll share tips on how to master the credit game.

What part of FICO’s history surprised you the most? Share your thoughts in the comments, and don’t forget to check out my episode on the top three activities that drive 80% of your credit score, released on July 22nd!

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