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How FICO Scores Became A Profit Machine

The article by Stephen Pastis for Forbes, published on March 10, 2025, discusses how FICO scores have evolved into a significant profit center for Fair Isaac Corporation. Initially developed to help lenders assess credit risk, FICO scores have become ubiquitous in financial decision-making, influencing not just loans but also insurance rates, employment decisions, and rental applications. The article explains that FICO's business model has shifted from merely selling software to creating a continuous revenue stream through licensing its scoring models to banks, credit agencies, and other entities. This shift has been facilitated by the increasing reliance on credit scores for various services, leading to a lucrative market where FICO holds a near-monopolistic position. The piece also touches on the implications of this model, including privacy concerns, the potential for score manipulation, and the broader societal impact of reducing complex financial behaviors to a single number.

Read the Full Forbes Article at:
[ https://www.forbes.com/sites/stephenpastis/2025/03/10/how-fico-scores-became-a-profit-machine/ ]