All About Credit Scores

Discussion in 'Credit Talk' started by texan, Sep 27, 2003.

  1. texan

    texan Well-Known Member

  2. lbrown59

    lbrown59 Well-Known Member

    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:

    THE END ** *** ** LB 59


Share This Page