How does the FICO scoring system work?
The scores range between 300 and 850 and are calculated statistically with information from the borrower’s credit history. The statistical models for generating credit scores are subject to federal regulation which insists that credit scoring be empirical and statistically sound, and forbids credit scoring based on such factors as race, religion, national origin, sex and marital status. Federal Regulation also requires that the acceptance or denial of a credit application by a lender be issued in writing and the lender must state to the borrower the reason for the denial.
