Credit Score System Based on Risk and Trust

Most credit scoring systems in the United States rank everyone on a scale of 400 to 850 points.

Where you fall on the scale can have a significant impact on your life.

Credit scoring has played a significant role in making consumer credit available to everybody who wants to leverage debt.

The answer is based on two ideas: risk and trust.

Credit scores assist lenders in determining which people are risky…

And which people they will lend to…

Consulting firms such as FICO assist lenders in making credit scoring decisions based on information held by credit bureaus that is constantly updated.

The “big three” credit bureaus in the United States are Equifax, Experian, and TransUnion.

These firms control the consumer credit scoring industry in the United States.

Their significance in the financial services industry…

And your ability to borrow money is significant and growing.

The big three, keep files containing personal information such as Social Security numbers and account information of individual customers.

Their clients are the banks and consumer finance companies that decide whether or not to lend money to those individuals, and on what terms.

You can learn what’s in your file.

You are also permitted to have one free report every 12 months.

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