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90% of of all major USA lenders base their lending decisions on FICO Scores (source: FICO). It is important, thus, to understand
a) what aspect of credit risk is a FICO score is actually designed to predict
b) What DOESN'T it actually take into account
c) How do the specific inclusion of some factors, weightages, and the exclusion of other factors impact different types and groups of lenders - basically who ends up being left out of bank-lending based on how credit scoring is performed?
These are my compiled self-study notes. They are intended to be a compilation of facts gathered and not intended to express any viewpoint either for/against credit score methodologies currently in practice.