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How Credit Scoring Has Changed Since The Recession

Monday, August 26, 2013 - 11:41 AM
A consumer’s payment history, credit utilization ratio and depth of credit have always a significant impact on credit scores, but for some types of credit scores, the scale of that impact has changed considerably in the years following the Great Recession.

In 2009, immediately after the recession, recent credit contribution carried the most weight in the VantageScore credit scoring model, accounting for 30% of a credit score while payment history determined 28%. Now those portions are 5% and 40%, respectively, the company explained in a webinar last week.

The challenge for credit score modelers lies in weighing customer behaviors in a way that generates scores as reliable, predictive tools for lenders. Thus, credit scoring models have to adapt to both changing consumer data and changing economic realities. Context is important.
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pearlbrownpearlbrown1,473 posts since
Nov 2, 2010
Rep Points: 6,397
1. Monday, October 7, 2013 - 7:56 AM
The amount you owe represents some 30 percent of your credit score points, which is the second largest contributor to your credit score. 
scorecomparisonscorecomparison3 posts since
Oct 5, 2013
Rep Points: 5
2. Monday, April 14, 2014 - 3:36 PM
I wonder how much can personal consumer loans influence my credit history in the positive or in the negative way. There is an opinion that such kind of loans may be very helpful in restoring the credit score. Is it right?
JullJull1 posts since
Apr 3, 2014
Rep Points: 2
3. Monday, April 14, 2014 - 4:30 PM
I have never really paid attention to how one gets the best credit score since the only loan we have ever had was on our former paid off home.  Isn't it more important to have a higher score if you think you will be needing loans?  I just make sure that whatever we charge can be paid off fully every billing cycle.
paoli2paoli21,401 posts since
Aug 10, 2011
Rep Points: 6,135