Mathematical tables assign points for different pieces of information that best predict future credit performance. Developing these models involves studying how millions of people have used credit. Score model developers find predictive factors in the data that have proven to indicate future credit performance. Credit score models can be developed from different sources of data. A custom model can developed from a business's own data on its customers.
Information is taken from credit application forms and credit bureau reports.
Credit bureau models are developed from information in consumer credit bureau reports. Scores are usually just one of many factors a lender considers in making a decision. This is particularly true in industries like mortgage lending where appraisals and other information play an important part. Lenders usually calculate application scores directly. Custom scores can be calculated by lenders or by the credit bureaus with whom they work.