Click for help. Your Credit Rating A Quick Guide to Credit Grades.
Credit scoring is one of the most discussed topics in the mortgage industry.
A California-based company, Fair, Isaac has created a complex, proprietary mathematical algorithm. These models are use to compare your credit history against, to assess your current credit worthiness. Credit scoring was first developed in the 1950s. In the early 1980s the three major credit bureaus, Experian, Equifax and Trans Union all worked with the Fair, Isaac company to develop generic scoring models that allow each bureau to offer a score based solely on the contents of the credit bureau's data about an individual using their own unique scoring system. Using their own unique system means the three repositories each use a different version of the Fair, Isaacs scoring model.