The use of credit scores goes back to the 1950’s, but it became prevalent during the 1980’s as a way for lenders to quickly and easily evaluate a potential borrower’s creditworthiness. Today credit scoring is used by lenders, insurers, landlords, employers, utility companies, and even judges, to evaluate your credit behavior.
There are many types of credit scoring models that exist today. Currently, Fair Isaac Corp’s FICO score and Vantage are two of the most widely used scoring models in the country. Credit scores are based on a mathematical formula and may vary a bit from the score your lender uses. However, scores should generally be in similar ranges and represent a comparable level of creditworthiness.