Most who generate credit scoring keep their algorithms proprietary, to there is little in the published literature describing how “buckets” specifically affect scoring.
However, First USA Bank applied for and received a patent in 2001 describing in detail the categories/algrithms that they proposed. at ;least bacl then, to score consumer credit risk.. It is U.S. Patent No. 6,202,053
It describes their scoring algorithm based on “buckets.” An interesting read.
In their published methodology, a first cut is made based on whether the credit file is “thick” or “thin.” In general, a thin file is less than three trade lines, or no credit card.
A second major branch is based on delinquencies. Files are classified as “clean” or “dirty”, based on the absence or presence of a major delinquency in the file, which is defined as a late of 60+, or a CO, CA, or PR.
A third major branch is %util on revolving accounts, with various sub-branches thereunder, depending upon the %util level.
A fourth branch is length of credit history. They use less than 10 years, or 10+ years as a primary breakdown.
There are sub-branches off of these major branches, which in all, match approximately the 12 major buckets that are reportedly used by FICO.
This description is, of course, not published by Fair Isaac, and is not the precise FICO methodology, but it is one of the few published, detailed descriptions of how a major credit scoring corporation views the breakdown of multiple scoring algorithms based on scoring "buckets." I dont think you will find a more complete, published discussion by any creditor of how they view scoring buckets than is disclosed in this patent.I It is exremely rare for one to attempt to patent a scoring algorithm, for thar removes the information from the trade secret realm, nd puts it into the public disclosure realm.
You can get a copy on the Patent Office website, at uspto.gov.
