What does a FICO score represent?

A FICO score is a crucial metric in the lending process, as it serves as a credit score that lenders use to assess a borrower's creditworthiness. This score is derived from the borrower's credit report, which includes data on their credit history, payment patterns, and overall debt management. A higher FICO score generally indicates a lower risk for lenders, suggesting that the borrower is more likely to repay their debts on time. This score plays a vital role in determining the terms of a loan, such as interest rates and approval likelihood.

In the context of the other options, the measure of a borrower's income is not represented by a FICO score; rather, lenders consider income separately when evaluating loan applications. The total debt of a borrower is also not the same as a FICO score, although it can influence the score; the FICO score reflects how well a borrower manages their debt rather than just the amount owed. Lastly, a rating of a borrower's financial stability encompasses broader financial factors beyond just credit, whereas the FICO score is specifically focused on credit behavior and risk assessment.