CCP FICO & D&B Rating Models 2

Question 1

Which FICO score range is generally considered 'good' credit by most lenders?

Accepted Answer

670–739

Answer

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?

Accepted Answer

Payment exactly on time per terms

Answer

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?

Accepted Answer

New credit inquiries

Answer

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:

Accepted Answer

Risk of supply chain disruption from a vendor

Answer

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?

Accepted Answer

Roughly 15–20%

Answer

Businesses in the highest-risk quintile typically carry a 15–20% probability of severe financial stress within the next year.

(CCP) Certified Credit Professional Practice Test

(CCP) Certified Credit Professional Practice Test

CCP FICO & D&B Rating Models 2