Could Help Consumers Shop Around Armed with their credit scores, consumers would be able to comparison-shop for the best rates on loans, he suggested. His bill would entitle consumers to one free credit report, including the score, from each credit bureau every year. There are several different models used for determining credit scores, and lenders choose the ones they prefer. Perhaps the most common, known as the FICO model for the company that developed it, Fair, Isaac and Co., rates consumers as credit risks on a scale from around 300 to 900. The criteria for rating consumers include past payment history of all types of accounts, incidences of delinquent payments, amount of money owed to creditors in relation to income, and length of time credit has been established.
Late payments can lower a consumer's score, while a good record of paying on time can raise it.
Companies that devise the scores say they don't take into account a consumer's gender, ethnic group, marital status, religion or nationality. Presence of adverse public records, such as bankruptcy filings, legal judgments, lawsuits, liens against property and wage attachments, collection actions and delinquent payments. How long delinquent payments were past due. Amount past due on delinquent accounts or in collection actions. Time elapsed since past-due items, adverse public records or collection actions occurred.