09-25-2007 06:29 AM
09-26-2007 04:55 AM
12-23-2012 10:42 AM
FICO scoring is an evaluation of risk of future default on credit obligations within the next two years or so. It is not an evaluation of overall consumer credit-worthiness, and is just one part of a creditor's evaluation tools. Creditors may choose, due to its convencience, to rely primarily or solely on a consumer's FICO score in making their determinations, particularly if the amount of credit is small. However, as the principal or credit limit at risk rises, most creditors will do a more in-depth manual review, both of a consumer's credit report, and other factors, such as overall income, assets, etc.
Actual payment history data represents actual consumer default, as opposed to the inferences of default potential used in the other FICO categories.
Payment history is thus rated highest amongst the five FICO scoring categories.