Ever since the concept of loaning money was conceived, lenders have been trying to find the ideal way to predict who will pay them back and who will default. Over time, methods for evaluating the likelihood of borrower repayment progressed from individual human judgment calls to more objective credit bureaus and reports.
Today, scores often determine not only whether consumers can get loans or credit cards, but how much they’ll pay for car insurance, whether a landlord will rent to them, and if an employer will hire them. As these three-digit scores are so influential, attempts are continually being made to ensure they are as accurate and fair as possible. This year, two new scoring systems have arrived: UltraFico and Experian Boost.