We're all familiar with credit scores. FICO scores, for example, range from 300-850. The score is used to gauge the risk that a particular applicant represents. But are you familiar with the bankruptcy score? Creditcards.com does an excellent job of explaining what this score is and why it matters.
From the story:
Although they attempt to predict different outcomes, credit scores and bankruptcy scores have much in common. "Fair Isaac's bankruptcy scoring models use consumer credit reports as input, just as the FICO score does," says Fair Isaac's Watts. Other bankruptcy scores also incorporate information from the credit bureaus. BankruptcyPredict, which became commercially available as a subscription service in early 2008, uses a "combination of credit reporting agency attributes and trending data, as well as transactional behaviors such as credit card transaction amounts, merchant category codes and cash advances," according to Experian's Web site.
Read the rest of the story here (link).