Standardized Credit Score Is Unveiled
The nation’s three biggest credit-reporting firms said Tuesday that they would standardize how they calculate consumer credit scores, with the goal of making the numbers easier for lenders and borrowers to understand.
The joint move by Equifax Inc., Experian and TransUnion also amounts to a competitive challenge to Fair Isaac Corp., the developer of the well-known FICO credit-scoring system.
Credit scores are three-digit numbers used by banks, auto dealers, landlords and others to assess consumers’ willingness and ability to pay their debts.