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Taking away some of the mystery of credit scoring

June 13, 2011 by John Krickus

For most people, a credit score on a business—the Experian Intelliscore—is a bit of a mystery. In reality, the score can be thought of as solid credit analysis driven by a statistically disciplined process.

For example, most people would agree that a tax lien would be a serious issue for a small business, but not that important for a fortune 500 company. Following this logic, there are actually multiple model paths that adjust to the type of business being scored, and the data present. The statistical analysis is critical in determining where one lien, or two liens, or 10 or more liens is a serious factor lowering the score, no factor at all, or something in between.

Finally, all Intelliscore reports provide up to four reasons which lowered the score, reducing the potential for mystery even further.


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