Where did the credit score number idea originate from? It didn't exist 10 years ago....?

I find it fascinating how the all important credit score number rating system didn%26#039;t even exist ten years ago (in it%26#039;s current form) and yet has become so important in people%26#039;s lives today. Where did this %26quot;number%26quot; idea originate from and why has it become so important in the past few years? It didn%26#039;t even exist ten years ago but it%26#039;s so hyped up!!

Where did the credit score number idea originate from? It didn%26#039;t exist 10 years ago....?

Actually the scores have been around a long time but the %26quot;public%26quot; wasn%26#039;t as educated as it is now about banking standards. The credit score is your FICO score developed by the Fair Isaac company. It%26#039;s become important as credit usage has increased over the years. Some people are fanatical about their score - it%26#039;s only as important as you want it to be. A high number (hovering around 800) will get you consistently great interest rates especially credit cards with perks. Also will help with personal loans and mortgages. If you have a high number, tell your bank you don%26#039;t want to pay point or closing fees and don%26#039;t hesitate to tell them you%26#039;ll be looking for a company that will work with you.

Where did the credit score number idea originate from? It didn%26#039;t exist 10 years ago....?

You are correct that the credit score did not exist until about ten years ago. It was started by a company called Fair Issacs and Company. (They have a website will more info at www.myfico.com) They use mathematical models in order to come up with credit score. The rationale is that it is more balanced than credit grantors guessing at scores. Not all credit grantors were able to judge credit worthiness on raw data alone, i guess. The credit scoring model has evolved and in the fall there will be a new system for credit scoring in a collusion of the big three credit bureuas. This way they don%26#039;t have to subscribe to Fair Issac and Company. Of course credit scores enhancement can be bought, and improved if you know what to do.

Good Luck