From the University Federal Credit Union - Austin, TX: http://www.ufcu.org/browse.php?content_name=credit_scores
Q: What is a credit score? 1*A: A credit score is a snapshot of your credit risk picture at a particular point in time stated as a number Q: Why do lenders use credit scores? 2*A: Credit scores give a fast and objective measurement of credit risk. 3* Credit risk refers to the risk to the lender that the borrower will not repay the loan as agreed. Q: How are credit scores calculated? 4*A: credit score is calculated by a mathematical equation that evaluates information from a credit report. 5*By comparing this information to the patterns in hundreds of thousands of past credit reports, the score predicts the future level of credit risk. From the University Federal Credit Union - Austin, TX: ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1*Nope it's an indicator of profitability which has nothing to do with risk. 2*Wrong again. It's merrily an indicator of how profitable of a customer you've been for lenders and insurers. 3*Which has nothing to do with FICO. 4*70% of which is inaccurate. 5*Scores based on information that's 70% incorrect can't predict jack! But Scores are a convenient excuse for unjustified overcharging <--------------------------------------------------------> Get the real scoop on FICO click here: http://members.aol.com/victcrdrpt/Score.html THE END ** *** ** LB 59 """"```--~~~~~~~~~--```'""'''