How Credit scoring works?

How Credit Scoring Works

Credit scoring models may differ slightly in how they score credit. Fair Isaac Corporation’s credit scoring system, known as a FICO score, is the most widely used credit scoring system in the financial industry, employed by more than 90% of top lenders.1 However, another popular credit scoring model is VantageScore, which was created by the top three credit-reporting agencies: TransUnion, Experian, and Equifax.2

 

A person’s credit score is a number between 300 and 850, with 850 being the highest score possible.3 Credit scores for small businesses, such as the FICO Small Business Scoring Service (SBSS), range from zero to 300