Credit points are the three-value number, based on statistic analysis of the credit folder of this or that person (or the companies).

Quantity of credit points is the ability to meet payments indicator. The more quantity of points the more stable looks a financial position for the creditor.

In the USA, credit bureaus are engaged in calculation of credit points. The basic sector of the market of credit bureaus, three companies occupy: Experian, Equifax and TransUnion. To them, more often creditors (banks, shops, etc.), for check of credit history of the clients also address. Credit bureaus earn that sell the collected information to the credit organizations and other interested persons.

You, possibly, guess that there should be a certain system of calculation of points, certain rules. And it is possible, already heard such concept as “FICO scores”. The matter is that systems of calculation of points, actually it is a lot of. And each credit bureau can count in own way. A three of the greatest credit bureaus (Experian, Equifax and TransUnion) have chosen system FICO developed by company Fair Isaac.

History of development of a method “FICO” by calculation of credit points

Method of calculation of credit points is not such young. Already by the end of 70th years, almost all large creditors used formulas for an estimation of a credit rating of clients and reliability of their financial position.

The invention of credit points, has been developed by two basic leaders in business — mathematician Earl Isaac and Bill Fair. These two enterprising persons, have created the company in 1956 under the name «Fair Isaac». And all that this company has created, perfectly works and to this day.

Originally the system should prove the freedom from prejudices. So, the credit risk couldn’t be connected with race of the person, its religion, skin color etc.

Then, there was a question with system renovation — creations of a uniform databank. Untimely renovation of the information on the potential borrower was the reason for it. Certainly, all has changed, when there were computers which have considerably facilitated the task decision on data storage, and also have helped to perform their fast transfer from one point in another when it was required.

How to find out the quantity of credit points?

Quantity of credit points, it is possible to find out from the credit report.

As all three cores of credit bureaus in the USA, use system FICO, it will be convenient to be guided in understanding of level of credit points. It is necessary to notice that the quantity of credit points can be various in each of these credit bureaus. It depends on with what periodicity they renew the information banks. Agencies Experian and Equifax, suggest for free to learn quantity of credit points and to watch their change within the next 30 days.

Monitoring of a condition of credit history allows watching its changes, increase or lowering of quantity of credit points, avoiding swindle from people who can use knowledge of the personal data of you.

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