Probability Of A FICO Score

A FICO score is the credit score mathematically developed by the company FICO. It shows potential lenders the risk that they are taking lending to you. The score is on a range starting at 300 and ending at 850; the higher your credit score, the probability that you will be lent to, increases. The score itself is determined from credit reports that disclose the individual’s history of financial activity. Their gender, race, religion, nor age play a role. From most influential to least, it is composed of a person’s payment history (35%), amount owed (30%), length of history (15%), variety in credit (10%), and a miscellaneous component (10%). Even though that a FICO score is the most popular type of credit score, it itself is indefinite. This is because the score differs depending on which bureau is checked: TransUnion, Equifax, or Experian. Each bureau has the option to let people annually check their credit scores.
However, I believe that is not enough.
Those bureaus should also provide credit summaries throughout the year, that way people will be better aware of what condition that they are in. I would change the presentation of the FICO score from a gas gauge like design to an arrow. This would show the viewer how far they have gone, and how much further that they have to go. In my opinion, the ratio at which a FICO score is determined, could be altered to better represent the individual. I would change it to 40% payment history, 35% amount owed, 15% variety in credit, 5% length of history, and 5% miscellaneous. In this new format, I tried to base it more on hard work so beginners could have an easier way to begin accumulating credit. The last, and most unlikely change that could be made to the FICO score system, is to only have one bureau to receive the score from. This alteration to the system could create a more secure score for the
client. The current logic of the FICO credit scoring system is reasonable, but could be greatly improved by a few minor changes. I currently respect that your score is only based on financial attributes, to discard bias. Additionally, I admire that there is a three digit score in order to get an overall assessment of how well you are positioned, credit wise. If I would have to choose, the one major change that I would apply would be the mandatory sent out credit summaries. In conclusion, the current status of the FICO score process is very commendable, but at the same time it needs a revision to adapt to the needs of clients.