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 certainly heard of the credit score. This score is used by credit granting companies to assess a customer's risk of default. However, many people still have doubts about how the score is calculated and what its importance is. In this article, we'll explain what the credit score is and how 4KST calculates it.

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

The credit score is a mark that reflects a customer's relationship with the credit market. The higher the score, the more confidence companies have in granting credit. 4KST, for example, is based on the Quod Score, which ranges from 300 to 1000, and considers a comprehensive analysis of the payer, taking into account delinquency, bills paid on time and those in arrears.

What makes the 4KST Credit Score different?

4KST's Quod Score stands out for its complete analysis of the payer, allowing companies to make fairer credit decisions and offer more suitable conditions to customers. The calculation base is made up of negative, registration and positive data, in accordance with Law 12.414/11.

How is the score calculated?

The Credit Score is calculated based on the consumer's payment history and financial situation, taking into account late payments and payments made on time. The score can decrease if there are outstanding payments or payments made late, and increase if payments are made on time.

What are the characteristics that make the score vary?

The score can vary depending on late payments, such as the number of times and days in arrears, and the financial moment, such as the total amount of credit, the type of debt and the number of credit applications.

Conclusion

As we have seen, the credit score is an important tool for companies that grant credit and for consumers who want to obtain better financing conditions. 4KST is a company that uses its own methodology to calculate the score, taking into account not only negative information, but also the consumer's positive data.

Invest in the 4KST Customizable Credit Score

If your company is looking for a more complete credit analysis tool to make fairer credit decisions tailored to the profile of your customers, contact our experts now and find out about the advantages of 4KST's Quod Score. Visit the link: https://4kst.ai/credit-score/