How Were Credit Scores Developed?
• Fair Isaac used credit data on millions of consumers and applied complex mathematical formulas to perform extensive research into credit patterns that forecast repayment performance. • • Fair Isaac identified distinctive credit patterns that correspond to a likelihood a consumer will make payments as agreed or be 90+ days delinquent in the next 24 months. • These credit patterns were refined to determine the items or combination of items most predictive of risk for a mortgage loan.
