It is calculated from the information on your credit bureau file at the time that the information was requested. Credit scoring helps lenders apply one set of rules to everybody. The sophistication of today's models allow for certain behavior patterns. One reason these scoring models are so widely used is because they can differentiate between the credit patterns of individuals. A scoring model contains a list of questions and answers, with points given for each answer.
Information proven to be predictive of future credit performance is used in a model.
It will also consider information pulled from your credit bureau report, such as the number of late payments, the amount of outstanding credit, the amount of credit being used, the amount of time credit has been established. Credit scoring systems do not consider race, religion, gender, marital status, birthplace, or current address. Bankrate Inc. All rights reserved.