Credit Score Example

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Most people never even see their credit score.


Credit scoring industry pioneer Fair, Isaac and Co. provides this peek:


Example 1
(Date of report: 7-15-96)

Low/average risk

This profile presents a certain degree of risk for the lender. First, the payment history raises some concerns due to the collection item and serious delinquency on the second bank card. Because these items are a few years old, they do not raise the level of risk of concern as much as they would have if they had occurred recently, but they do affect the score. The balances outstanding also represent a certain level of risk. Although only a fairly small portion of the available credit has been used, it is still higher than optimal. However, the long file history and lack of recent inquiries or credit line openings are positive indicators. This profile would probably represent an acceptable risk level to most credit grantors.
Industry Date reported Date opened High credit Balance Current rating Historical delinquency
Bankcard 6-96 3-85 $5,000 $1,500 current  
Auto loan 6-96 7-92 $8,000 $2,000 current  
Retail 5-96 9-87 $  300 $0 current  
Retail 3-96 6-88 $1,000 $0 current  
Bankcard 5-94 11-84 $3,000 $0 current 120+
4 years ago

Inquiries :

Public record/Collection items:
1 collection item, 4 years ago, for $500



Example 2:
(Date of report: 7-15-96)

High risk

Most lenders would agree that this profile represents a high level of risk. First, one of the bankcards was delinquent the last time it was reported. Although the delinquency is minor -- only a 30-day rating -- it points to potential risk, given that the file history is quite short. The ratio of balances to high credit is also indicative of significant risk. The balances are quite large relative to their high credit amounts and the amount of time the accounts have been open. Also telling is the fact that all trade lines have balances. This profile, along with the short file history, strongly contributes to the high-risk ranking.
Industry Date reported Date opened High credit Balance Current rating Historical delinquency
Bankcard 6-96 10-95 $3,000 $2,700 30 days  
Retail 5-96 11-95 $  750 $   300 Current  
Bankcard 5-96 2-96 $1,500 $1,600 Current  
Retail 3-96 1-94 $  500 $   450 Current  
Bank: 7-1-96; Retail: 6-13-96; Bank: 2-7-96; Retail: 11-2-95; Bank: 3-23-95
Public record/Collection items: