3-1 How is a JCIC Credit Score calculated?
The JCIC Credit Score is calculated based on the latest credit information reported to the JCIC by the members. According to the characteristics of the subject, we apply the corresponding scorecard. Most scorecards have 10 to 20 variables, and each variable has several bins, along with the respective score weights. These bins are added up according to the characteristics of the subject to get the total score value.
3-2 What components make up a JCIC Credit Score?
Credit information falls into four major categories that make up the JCIC Credit Score.
Refers to the repayment status of credit cards, loans,checks and financial leases. This includes the recency, severity, and frequency of any delinquencies. It is an indication whether the person often has difficulty paying their debt, or has a risky attitude toward their credit.
Includes how much debt you carry in total (ex. the debt-to-limit ratio, the number of accounts with balances), what types of loans you have (ex. credit card cash advance, revolving credit, collateral loan) and the variation of debt (ex. whether you continue to reduce debt).
3.Length of credit history:
Refers to the age of your accounts (ex. the age of the oldest account). This indicate how representative this account's activities are about your creditworthiness.
This mainly refers to applications for new credit (ex. credit inquiries to JCIC for new credit). Needing new credit might mean the person is having trouble paying bills or is at risk of overspending. Therefore, credit scoring models do take such records into consideration.
There are other factors that may take effect on the JCIC Credit Score, like loan guarantee information.
3-3 What are the weights of the major factors in the JCIC Credit Score?
Because the subjects of each scorecard have different characteristics, the weights of the factors also vary. In general, the factors related to payment history or amounts owed weigh heavier.
Scoring factors and their weights are the core of the credit scoring model. Therefore, in order to maintain objectivity, the JCIC and other major credit score developers in the world don't reveal the exact detail to the public.
3-4 What data doesn't impact your JCIC Credit Score?
Personal information (such as age, sex, education, occupation, years of work, income), bank balances, personal properties, government data (such as personal labor insurance record, driver license information, vehicle registration information), negative credit information provided by TWSE, and the inquiry records of the above information are the factors that don't affect your JCIC Credit Score.