What Is a Credit Score, and How Does 4KST Calculate It?

If you’ve ever applied for a loan or a credit card, you’ve surely heard of a credit score. This score is used by lenders to assess a customer’s risk of default. However, many people still have questions about how the score is calculated and why it’s important. In this article, we’ll explain what a credit score is and how 4KST calculates yours.

What is a credit score, and how does 4KST calculate it?

A credit score is a rating that reflects a customer’s relationship with the credit market. The higher the score, the more confident companies are in extending credit. 4KST, for example, uses the Quod Score as its basis, which ranges from 300 to 1,000 and involves a comprehensive analysis of the borrower, taking into account delinquencies, on-time payments, and late payments.

What sets the 4KST Credit Score apart?

4KST’s Quod Score stands out for providing a comprehensive analysis of the payer, enabling companies to make fairer credit decisions and offer more appropriate terms to customers. The calculation is based on negative, registration, and positive data, in accordance with Law 12.414/11.

How is the score calculated?

A credit score is calculated based on a consumer’s payment history and current financial situation, taking into account both late and on-time payments. The score may decrease if there are outstanding payments or payments made late, and increase with payments made on time.

What factors cause the score to vary?

Your credit score may vary based on late payments—such as the number of times you've been late and the number of days past due—and your financial situation, such as your total credit balance, type of debt, and number of credit applications.

Conclusion

As we have seen, the credit score is an important tool for lenders and for consumers seeking better financing terms. 4KST is a company that uses its own methodology to calculate the score, taking into account not only negative information but also positive data about the consumer.

Invest in the 4KST Customizable Credit Score

If your company is looking for a more comprehensive credit analysis tool to make credit decisions that are fairer and better suited to your customers’ profiles, contact our experts today and learn about the benefits of 4KST’s Quod Score. Visit the link: https://4kst.ai/credit-score/