Assessing the Risks: Different Credit Scoring Models and Impacts on the Mortgage Market
Posted by Michael151 days ago
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This independent research report shows why minimum scoring criteria adds reliability to a credit score and how removing it makes the credit score both less predictive and in the long run more costly for everyone. Kroll analyzed the credit failure rate over a two-year period across a data set of 40 million credit scores from individuals who had either a FICO Score or an alternative score in which FICO’s minimum scoring criteria are not used.
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