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The Eight Secret Financial Scores

by Contributor

The Fair Credit Reporting Act shed a bright light on the credit scoring industry when it gave you the ability to review, for free, your credit history at each of the three bureaus. In addition to credit reports, the FCRA also gave you access to other specialty reports like your insurance claims reports via CLUE and your check writing history via ChexSystems.

However, credit scores are just the beginning. Like an iceberg, it’s what we don’t get to see that often has the great impact on our life. Liz Pulliam Weston recently wrote about 8 secret scores that various financial institutions keep about you.

You are probably familiar with Credit-risk scores which you probably know as your FICO credit score, though various institutions may keep their own version of your score without use of the FICO equation model. However, many people may not be aware of the following financial scores:

  1. Response score – This is a score based on the probability you’ll respond to an offer they send you.
  2. Application score – This score incorporates all the data on your application.
  3. Bankruptcy score – This score tries to predict how likely you will to declare bankruptcy.
  4. Revenue score – This score tries to predict if and how profitable you will be to the institution.
  5. Attrition-risk score – This score tries to predict how likely you will stop using their products.
  6. Behavior score – This score tries to predict future behavior, as nebulous as that sounds.
  7. Transaction score – Every time you charge something to your card, a transaction score is calculated to determine whether to approve the charge.
  8. Collection score – This score is used on accounts in collections by collection agencies to determine how “collectible” it is.

As you can see, some of the other scores are a lot scarier than the standard credit-risk score. Unfortunately, you can’t get access to those scores and there isn’t any pending legislation that would give you access. For now, we’ll have to be content knowing they exist.

This is a guest article from Jim, who writes about personal finance and other money issues at Bargaineering.com.


Published or updated January 28, 2010.
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{ 3 comments… read them below or add one }

1 jim

Thanks for publishing this and good luck with everything! :)

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2 Ryan

Thanks for sharing, Jim. :)

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3 hustler

It seems like everything is tied together, from car insurance to what I buy at McDonald’s! I’ve recently learned that my credit doesn’t just affect whether or not I can get a loan. Thanks for the information.

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