Current Rating Sytems


The currently prevailing consumer credit rating system in the US is characterized by the following:

  • Strong emphasis on historic performance;

  • Entry hurdles for households without credit history;

  • Limited or no visibility of household’s financial vulnerability;

  • Reactive and based on short-term cash flow disruption;

  • No distinction between external risk factors (insurable) and personal (behavioral) risk factors;

  • Important household economics (such as income or savings) are not considered in the assessment.

Get in touch


Learn how to make educated decisions and invest in students future.