A credit-scoring model introduced in 2009 by the FICO company to provide a more accurate picture of a potential borrower's ability to repay a loan. In particular, it is meant to provide a more accurate assessment of low-risk consumers whose scores were blemished by minor delinquencies, consumers with minimal credit history and consumers with poor credit.


The new formula ignores minor slipups, such as delinquencies with an original amount of $100 or less. It also weeds out people who had been inflating their credit scores by paying a stranger with better credit to add them as an authorized user on one of their credit card accounts (a practice known as "piggybacking"). The range of possible credit scores remains unchanged under the new system.

  1. Hard Inquiry

    A type of credit report check that may lower an individual's ...
  2. Credit History

    A record of a consumer's ability to repay debts and demonstrated ...
  3. Credit Score

    A statistically derived numeric expression of a person's creditworthiness ...
  4. Credit Risk

    The risk of loss of principal or loss of a financial reward stemming ...
  5. FICO Score

    A type of credit score that makes up a substantial portion of ...
  6. Delinquent

    The failure to accomplish what is required by law or duty, such ...
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  1. Do free credit reports affect your credit score?

    Free credit reports do not impact your credit score. Credit inquiries are divided into two categories: soft inquiries and ... Read Full Answer >>
  2. Does a free credit report show your credit score?

    The free credit reports available from the three credit reporting agencies do not include your credit score. Under the 2 ... Read Full Answer >>
  3. Is getting a free credit report safe?

    Getting a free credit report can be safe if you are careful about the particular website from which you get it. Credit reports ... Read Full Answer >>
  4. How accurate are free credit reports?

    Free credit reports are usually considered mostly accurate, which is why it is important to regularly examine your own reports. ... Read Full Answer >>
  5. Does the Walmart credit card have an annual fee?

    The Walmart credit card does not charge annual fees to its cardholders. It does, however, have other fees associated with ... Read Full Answer >>
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    NetSpend prepaid MasterCard and Visa cards are popular prepaid debit cards requiring no minimum balance and no credit check. ... Read Full Answer >>

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