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Chapter 2. How Credit Scoring Works > How Your Score Is Calculated

How Your Score Is Calculated

When most of us think of scores, we think of the relatively straightforward systems used in sports or in school tests. You get points (and possibly demerits) for certain actions, behaviors, or answers, and those are totaled to determine your score.

Credit scoring isn't nearly so easy. Credit-scoring models use “multivariate” formulas. That basically means that the value of any given bit of information in your report might depend on other bits of information.


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