FICO & D&B Rating Models Flashcards
7 cards from real CCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 FICO & D&B Rating Models flashcards as text
Which FICO score range is generally considered 'good' credit by most lenders?
Answer: 670–739
FICO scores of 670–739 are classified as 'good,' while 740+ is 'very good' and 800+ is 'exceptional.'
In the D&B PAYDEX score, what does a score of 80 indicate?
Answer: Payment exactly on time per terms
A PAYDEX score of 80 means the business pays exactly on time according to agreed terms.
Which factor carries the LEAST weight in the standard FICO scoring model?
Answer: New credit inquiries
New credit inquiries account for only 10% of the FICO score, the smallest single category.
The D&B Supplier Risk Manager score primarily helps companies assess:
Answer: Risk of supply chain disruption from a vendor
D&B Supplier Risk Manager scores evaluate the likelihood that a supplier will experience business failure or financial distress.
A company with a D&B Financial Stress Score in the highest-risk quintile faces what approximate probability of severe financial stress within 12 months?
Answer: Roughly 15–20%
Businesses in the highest-risk quintile typically carry a 15–20% probability of severe financial stress within the next year.
Which FICO score version is most commonly used by mortgage lenders in the United States?
Answer: FICO Score 2/4/5 (Classic versions)
Mortgage lenders typically use older classic FICO versions — Equifax Beacon 5.0, Experian/Fair Isaac v2, and TransUnion FICO Classic 04.
What does the D&B Viability Rating measure?
Answer: The likelihood a business will remain active and meet financial obligations
The D&B Viability Rating predicts whether a business will remain active and financially solvent over the near term.