What is a Credit Risk Score?
A credit risk score is an assessment of an individual’s credit worthiness based on a statistical analysis of the information contained in his or her credit report. The most well known type of credit risk score is the Fair, Isaac or FICO score. Sophisticated mathematical processes calculate the summary by assigning numerical values to various pieces of information in the credit report. Credit bureaus provide risk scores to credit grantors who use them to objectively evaluate an applicant’s credit-worthiness. The score itself is relative and will be viewed differently by creditors depending on numerous factors, including the creditor’s risk level, marketing goals, and business practices. Your risk score will change over time as your credit history develops.
A credit risk score is an assessment of an individual’s credit worthiness based on a statistical analysis of the information contained in his or her credit report. The most well known type of credit risk score is the Fair, Isaac or FICO score. Sophisticated mathematical processes calculate the summary by assigning numerical values to various pieces of information in the credit report. Credit bureaus provide risk scores to credit grantors who use them to objectively evaluate an applicant’s credit-worthiness. The score itself is relative and will be viewed differently by creditors depending on numerous factors, including the creditor’s risk level, marketing goals, and business practices. Your risk score will change over time as your credit history develops. DOES A CREDIT REPORT CONTAIN OTHER, UNRELATED INFORMATION? No. Your consumer credit report does not contain information about your race, religious preference, medical history, personal lifestyle, personal background, political prefere
A credit risk score is a statistical summary of the information contained in a consumer’s credit report. Sophisticated mathematical processes calculate the score by assigning numerical values to various pieces of information in the credit report. Credit bureaus provide risk scores to credit grantors who use them to objectively evaluate an applicant’s credit-worthiness. The score itself is relative and will be viewed differently by creditors depending on numerous factors, including the creditor’s risk level, marketing goals, and business practices. Your risk score will change over time as your credit history develops. Does a Credit Report Contain Other, Unrelated Personal Information? No. Your consumer credit report does not contain information about your race, religious preference, medical history, personal lifestyle, personal background, political preference or criminal record. How long Does Information Stay on My Credit Report? Positive credit information remains on your report indef
A credit risk score is a statistical summary tool used by lenders in the credit decision process. This score is calculated by assigning numerical values to various pieces of information from your credit report. This allows lenders to objectively view an applicant’s creditworthiness. For example, if you own a home and have lived there for several years, held a job for a long time and have a good payment history, all of these help you achieve a higher risk score. A high-risk score means you’re more likely to get the credit you want. As your credit history changes, so will your risk score. The most commonly used risk score is a “FICO” score.
