Before the use of scoring the credit granting process was slow, inconsistent, and unfairly biased. Credit scores, especially FICO scores, have made big improvements in the credit process. Because of FICO scores:

• People can get loans faster. FICO scores can be delivered almost instantaneously helping lenders speed up loan approvals. When you apply for credit you get an answer in less time. Today many credit decisions can be made within minutes, or online within second. A mortgage application can be approved in hours instead of weeks. FICO scores allow retail stores, internet sites, and other lenders, to make instant credit decisions.
• Credit decisions are fairer. Lenders can focus only on the facts related to credit risk rather than their personal opinions or biases. Factors like your gender, race, religion, nationality, and marital status are not considered by FICO scores. When a lender makes a credit decision based at least partly on your FICO score you can be sure that the lender’s evaluation of your credit history is fair and objective.
• Older credit problems have less impact. If you had poor credit performance in the past your FICO score will not reflect that long term. The impact of past credit problems fade as time passes and more recent payment patterns are weighted more heavily.
• More credit is available. Credit scores make loans more available and offer you better terms because your score gives them precise information to base decisions. It allows lenders to identify individuals who are likely to perform well in the future even if their credit report shows past problems. If your score is lower than a lender’s cutoff for approval you can still benefit. Many lenders offer a choice of credit products geared toward different risk levels. Most have their own guidelines, so if you are turned down by one lender another may be able to get you approved. The use of FICO scores gives lenders the confidence to offer credit to more people because they have a better understanding of the risk. This gives you more options when you apply for credit.
• Credit rates are lower overall. With more credit available you pay less. Automated credit processing like credit scoring, makes getting approval more efficient and less costly for lenders who in turn are able to pass savings on to the customers. By controlling credit losses lenders can offer lower rates.