CCP FICO & D&B Rating Models 2 — Questions and Answers
Question 1: Which FICO score range is generally considered 'good' credit by most lenders?
- 580–669
- 670–739 (Correct answer)
- 740–799
- 800–850
Correct answer: 670–739
FICO scores of 670–739 are classified as 'good,' while 740+ is 'very good' and 800+ is 'exceptional.'
Question 2: In the D&B PAYDEX score, what does a score of 80 indicate?
- Payment 30 days beyond terms
- Payment exactly on time per terms (Correct answer)
- Payment 15 days early
- Payment 30 days early
Correct answer: Payment exactly on time per terms
A PAYDEX score of 80 means the business pays exactly on time according to agreed terms.
Question 3: Which factor carries the LEAST weight in the standard FICO scoring model?
- Payment history
- Amounts owed
- New credit inquiries (Correct answer)
- Length of credit history
Correct answer: New credit inquiries
New credit inquiries account for only 10% of the FICO score, the smallest single category.
Question 4: The D&B Supplier Risk Manager score primarily helps companies assess:
- Consumer creditworthiness for retail lending
- Risk of supply chain disruption from a vendor (Correct answer)
- Employee fraud potential
- International tariff exposure
Correct answer: Risk of supply chain disruption from a vendor
D&B Supplier Risk Manager scores evaluate the likelihood that a supplier will experience business failure or financial distress.
Question 5: A company with a D&B Financial Stress Score in the highest-risk quintile faces what approximate probability of severe financial stress within 12 months?
- Less than 1%
- About 5%
- Roughly 15–20% (Correct answer)
- Greater than 50%
Correct answer: Roughly 15–20%
Businesses in the highest-risk quintile typically carry a 15–20% probability of severe financial stress within the next year.
Question 6: Which FICO score version is most commonly used by mortgage lenders in the United States?
- FICO Score 8
- FICO Score 9
- FICO Score 2/4/5 (Classic versions) (Correct answer)
- FICO Score 10T
Correct answer: FICO Score 2/4/5 (Classic versions)
Mortgage lenders typically use older classic FICO versions — Equifax Beacon 5.0, Experian/Fair Isaac v2, and TransUnion FICO Classic 04.
Question 7: What does the D&B Viability Rating measure?
- A company's profitability over the past fiscal year
- The likelihood a business will remain active and meet financial obligations (Correct answer)
- The number of employees relative to industry peers
- A firm's credit utilization ratio
Correct answer: The likelihood a business will remain active and meet financial obligations
The D&B Viability Rating predicts whether a business will remain active and financially solvent over the near term.
CCP FICO & D&B Rating Models 2
Which FICO score range is generally considered 'good' credit by most lenders?