Since the 1950s, Fair Isaac & Co were pioneers in setting credit scoring standards and even today their method has become the most widely accepted and reliable scoring method used by lenders in credit evaluation.
A credit score attempts to condense your credit history into a single number. Credit scores analyze your credit history by considering numerous factors such as:
• Late payments.
• The amount of time credit has been established.
• The amount of credit used versus the amount of credit available.
• Length of time at present residence.
• Employment history.
• Negative credit information such as bankruptcies, charge-offs, collections, liens, etc.
Credit scores are calculated by using scoring models and mathematical tables that assign points for different pieces of information which best predict future credit performance.
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