To give you a better understanding let’s start with a little history of credit scores. The most famous of these scores is known as the FICO score, which was the model developed by the Fair-Issacs Company in the late 1950s and is applicable to consumers. Today, Fair Issacs credit scoring is behind the scores you see from the three primary credit agencies: Experian, Equifax, and TransUnion. The FICO score ranges from 330-830. A score of 620 or less is considered sub-standard, yet the national average today is 678 with the NE US being the highest at 701.
Commercial scores published by D&B, Experian, and TransCredit are on a more simplified range of 0-100. The truth is that the Fair-Issacs Company, the major credit companies, and TransCredit do not divulge how their scoring model works due to the competitive nature of the credit business, just as each of you would not publish a list of your customers and the rates you charge them for your competition to see. So each company uses a different computer model to tweak the same data… to their belief that their score is the best. Invariably that produces different scores.
So why is the TransCredit score better? Are you in or do business with the trucking industry? At TransCredit, that’s all we do! January 2013 begins our 27th year in this industry; we have the only credit score that is determined by exclusively evaluating trucking industry payment terms.