Your credit score (aka risk score, risk predictor, etc) means a numerical value or a categorization derived from a statistical tool or modeling system used to predict the likelihood of certain credit behaviors. Basically this means there very complicated math problems that look at a bunch of information a credit report and turn that into a single number that tells the end user how likely a certain behavior is. Different scoring models are used to predict different behaviors, for example the likelihood of a consumer filing bankruptcy is calculated differently than the likelihood that they will fail to pay their auto loan.
If a credit report is being pulled for a purpose where these behaviors aren’t important, like employment screening, the end user will not be provided with a credit score. When you pull your own consumer credit report (www.annualcreditreport.com) you won’t get a score either because the purpose is simply to make sure that all the information is accurate. Likewise, if the end user doesn’t request a credit score one won’t be provided.
It is possible that a credit score is relevant and has been requested, but no score is generated. If the consumer does not have a credit report the scoring model won’t be able to generate a score. This could happen to someone who new to credit like young adults, recent immigrants or people who prefer to use only cash. We also see this occur sometimes when someone changes their name and/or address and the credit bureau(s) create a second credit report for the consumer under the new information.
The scoring models also have minimum requirements to generate a score. Here are some of the requirements for a FICO, the most common scoring provider, score. If no records on a consumer’s credit report meet these requirements, the credit report will not generate a credit score.
- The report must have at least one account that has been open for six months or longer
- The report must have at least one undisputed account that has been updated in the last six months
- The report must be free of any deceased indicators. (This could be a problem is the consumer is joint on an account with a deceased co-borrower.)