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Scoring products

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Definition Edit

Scoring products (sometimes referred to as "risk scores" or "credit scores") are

predictive models based on analyses of historical consumer credit history and performance data. When a consumer applies for credit or insurance, the models use information in the consumer's credit history to predict the risk posed by that consumer. The risk is typically summarized in a numerical score.[1]

Overview Edit

"Each scoring model may treat disputed information differently and the exact nature of the scoring model algorithm is proprietary. Specific information currently under investigation may not be used in calculating a credit score (e.g., if a consumer disputes a particular late payment, that late payment is not considered when the credit score is determined)."[2]

References Edit

  1. Report to Congress Under Section 319 of the Fair and Accurate Credit Transactions Act of 2003, at 2 n.6.
  2. Id. at 4 n.14.

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