The Broken World of Credit Scores: Unveiling the Hidden Truths
First and foremost, it is essential to understand how credit scores are calculated. Most credit scores are based on the FICO scoring model, which considers five primary factors: payment history, amounts owed, length of credit history, credit mix, and new credit. While these factors seem straightforward, they often fail to provide a comprehensive overview of an individual's financial situation and creditworthiness.