Many Scoring Models

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Transcript

As I've stated before, there are many scoring models and these give many different scores. For the purposes of this presentation we will use the mortgage model, which uses the FICO scoring system. In the US FICO credit scores range from 300 to 850. Typically FICO scores below 620 are considered higher risk borrowers 650 as average general credit use behavior and above 720 being excellent scores are based on payment history, outstanding debts, credit history, new credit and credit and youth. We will get into that further on in this presentation. The other issue is the scoring that can be purchased on the internet should not be used, because they are not FICO scores unless you purchase Sit through fifo@www.myfico.com

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