Credit Policy for businesses and how to extend credit and manage credit risk

FICO is named for Fair, Isaac, the company that created it.  This number can give you an idea if someone is likely to make timely payments or not.  The number is generated by computers based on the information found on a persons credit report.  Because there are variances on the 3 credit bureaus reporting, this number can be different on each report for an individual.  It should be very close though. 

When you are checking credit, you can consider this number to help you make a decision on wether to extend credit.  The higher the FICO number, the better, numbers can range from 300-850.  So look for a high number when using FICO to help evaluate extending credit to a customer.