How Credit Scores Are Built and Used

Amy Cutts (President, AC Cutts and Associates LLC) details how credit scores are built, what factors and variables may contribute to how they are evaluated, how credit scores from FICO and others have evolved, and the limits to the formulas and data used in building the models that provide credit scoring. Richard Green (USC Lusk Center for Real Estate) asks questions about how debts differentiate in the calculations, the issues with using outdated FICO scoring models, and what can be done regarding social disparities created by flaws in credit scoring.