The Average FICO Credit Score Rises to 706 for the First Time in History

FICO score, created by the Fair Isaac Corporation, has been used by most financial service organizations to assess the credit risk of consumers. FICO has also created credit-based insurance scores that are used by insurers to determine insurance rates for homeowners while underwriting the policy. According to FICO, 95% of insurers use insurance scores in deciding the insurance rates. With the average FICO credit score reaching an all-time high of 706, vHomeInsurance took the initiative to analyze the financial market trends and understand the parameters used to calculate credit score and insurance score.