Modern Day Credit Scoring. How Companies are Quantifying your Risk.

Credit? What is the method behind the madness? How do the credit agencies and lenders rate your risk to decide how and when to give you a credit card or home loan? Your FICO (Fair Isaac Corporation) score also known as your Credit-risk score (which ranges from 300-850) is the most common and well know credit qualifier. However, there are eight other scores that lenders and credit agencies keep on you to determine your default potential and profitability. Response score, Revenue score, Bankruptcy score, Application score, Collection score, Behavior score, Transaction score, and Attrition-risk score are their titles. If you are interested please read this story which goes into greater detail on what each score is and how it can help or hurt your buying potential.