# How your credit score is built and what moves it

> A process map exported from forks.world (https://forks.world). Author: Brian. Source: https://forks.world/p/cmv21y3f50002if06wk74w3tv
> It describes who does what, in what order, and with which technology. Read the plain-language sections first; the JSON at the end is the exact, complete data.

## Summary

- 14 steps across 2 layers
- Persona: You, Lenders
- Technology / systems: Credit bureaus, Scoring model

## Pain points

Where this process hurts, worst first:

- **Late payments and high balances pull it down** (How your credit score is built and what moves it; critical): One missed payment can stay on a report for seven years

## How to read this file

- A process is made of **layers**. The main layer is the top level; any step of kind `subprocess` opens a detail layer with its own lanes and steps.
- **Lanes** are either persona (people/roles) or technology (systems). Each step belongs to one lane; `using` lists tools a person uses for that step.
- Step kinds: `start`, `task`, `decision` (its arrows carry the answer as a label), `subprocess`, `end`.

## How your credit score is built and what moves it

Lanes:
- You: person / role (id `you`)
- Lenders: person / role (id `lender`)
- Credit bureaus: technology / system (id `bureau`)
- Scoring model: technology / system (id `score`)

Steps, in the order they run:

1. **Open a credit card or take out a loan** [start; You; id `c1`]
   - then Report the account to the credit bureaus every month
2. **Report the account to the credit bureaus every month** [task; Lenders; id `c2`]
   - then Build a file of every account and payment
3. **Build a file of every account and payment** [task; Credit bureaus; id `c3`]
   - then Score the file from 300 to 850
4. **Score the file from 300 to 850** [subprocess; Scoring model; id `c4`], opens the detail layer "What goes into the score"
   - then Pay on time and keep balances low?
5. **Pay on time and keep balances low?** [decision; You; id `c5`]
   - if "Yes" go to The score rises over the years; if "No" go to Late payments and high balances pull it down
6. **The score rises over the years** [task; Scoring model; id `c6`]
   - then Apply for a car loan or a mortgage
7. **Apply for a car loan or a mortgage** [subprocess; You; id `c8`], links to the published process "How a mortgage works, from application to the last payment" (https://forks.world/p/cmv21nv6x002kl2064cfeqqcp; full text at https://forks.world/api/public/cmv21nv6x002kl2064cfeqqcp/export)
   - then Pull the score and set the interest rate
8. **Pull the score and set the interest rate** [task; Lenders; id `c9`]
   - then A higher score means a lower rate and less interest paid
9. **A higher score means a lower rate and less interest paid** [end; You; id `c10`]
10. **Late payments and high balances pull it down** [task; Scoring model; id `c7`] ⚠ PAIN POINT (critical): One missed payment can stay on a report for seven years
   - then Apply for a car loan or a mortgage

```mermaid
flowchart LR
  subgraph l_you["You"]
    n_c1(["Open a credit card or take out a loan"])
    n_c5{"Pay on time and keep balances low?"}
    n_c8[["Apply for a car loan or a mortgage"]]
    n_c10(["A higher score means a lower rate and less interest paid"])
  end
  subgraph l_lender["Lenders"]
    n_c2["Report the account to the credit bureaus every month"]
    n_c9["Pull the score and set the interest rate"]
  end
  subgraph l_bureau["Credit bureaus"]
    n_c3["Build a file of every account and payment"]
  end
  subgraph l_score["Scoring model"]
    n_c4[["Score the file from 300 to 850"]]
    n_c6["The score rises over the years"]
    n_c7["Late payments and high balances pull it down"]
  end
  n_c1 --> n_c2
  n_c2 --> n_c3
  n_c3 --> n_c4
  n_c4 --> n_c5
  n_c5 -->|"Yes"| n_c6
  n_c5 -->|"No"| n_c7
  n_c6 --> n_c8
  n_c7 --> n_c8
  n_c8 --> n_c9
  n_c9 --> n_c10
```

### What goes into the score (detail of step "Score the file from 300 to 850")

Lanes:
- Scoring model: technology / system (id `score`)
- Credit bureaus: technology / system (id `bureau`)

Steps, in the order they run:

1. **Payment history is the biggest piece** [start; Scoring model; id `f1`]
   - then How much of your credit limit you use
2. **How much of your credit limit you use** [task; Scoring model; id `f2`]
   - then How long your accounts have been open
3. **How long your accounts have been open** [task; Scoring model; id `f3`]
   - then New applications and the mix of accounts
4. **New applications and the mix of accounts** [end; Scoring model; id `f4`]

```mermaid
flowchart LR
  subgraph l_score["Scoring model"]
    n_f1(["Payment history is the biggest piece"])
    n_f2["How much of your credit limit you use"]
    n_f3["How long your accounts have been open"]
    n_f4(["New applications and the mix of accounts"])
  end
  n_f1 --> n_f2
  n_f2 --> n_f3
  n_f3 --> n_f4
```

## Full data (JSON)

```json
{
  "title": "How your credit score is built and what moves it",
  "maps": {
    "m_root": {
      "id": "m_root",
      "lanes": [
        {
          "id": "you",
          "name": "You",
          "type": "person"
        },
        {
          "id": "lender",
          "name": "Lenders",
          "type": "person"
        },
        {
          "id": "bureau",
          "name": "Credit bureaus",
          "type": "system"
        },
        {
          "id": "score",
          "name": "Scoring model",
          "type": "system"
        }
      ],
      "steps": [
        {
          "id": "c1",
          "kind": "start",
          "lane": "you",
          "next": [
            {
              "to": "c2"
            }
          ],
          "uses": [],
          "label": "Open a credit card or take out a loan"
        },
        {
          "id": "c2",
          "kind": "task",
          "lane": "lender",
          "next": [
            {
              "to": "c3"
            }
          ],
          "uses": [],
          "label": "Report the account to the credit bureaus every month"
        },
        {
          "id": "c3",
          "kind": "task",
          "lane": "bureau",
          "next": [
            {
              "to": "c4"
            }
          ],
          "uses": [],
          "label": "Build a file of every account and payment"
        },
        {
          "id": "c4",
          "kind": "subprocess",
          "lane": "score",
          "next": [
            {
              "to": "c5"
            }
          ],
          "uses": [],
          "child": "m_factors",
          "label": "Score the file from 300 to 850"
        },
        {
          "id": "c5",
          "kind": "decision",
          "lane": "you",
          "next": [
            {
              "to": "c6",
              "label": "Yes"
            },
            {
              "to": "c7",
              "label": "No"
            }
          ],
          "uses": [],
          "label": "Pay on time and keep balances low?"
        },
        {
          "id": "c6",
          "kind": "task",
          "lane": "score",
          "next": [
            {
              "to": "c8"
            }
          ],
          "uses": [],
          "label": "The score rises over the years"
        },
        {
          "id": "c7",
          "kind": "task",
          "lane": "score",
          "next": [
            {
              "to": "c8"
            }
          ],
          "pain": {
            "note": "One missed payment can stay on a report for seven years",
            "level": 3
          },
          "uses": [],
          "label": "Late payments and high balances pull it down"
        },
        {
          "id": "c8",
          "kind": "subprocess",
          "lane": "you",
          "link": {
            "id": "cmv21nv6x002kl2064cfeqqcp",
            "scope": "public",
            "title": "How a mortgage works, from application to the last payment"
          },
          "next": [
            {
              "to": "c9"
            }
          ],
          "uses": [],
          "label": "Apply for a car loan or a mortgage"
        },
        {
          "id": "c9",
          "kind": "task",
          "lane": "lender",
          "next": [
            {
              "to": "c10"
            }
          ],
          "uses": [],
          "label": "Pull the score and set the interest rate"
        },
        {
          "id": "c10",
          "kind": "end",
          "lane": "you",
          "next": [],
          "uses": [],
          "label": "A higher score means a lower rate and less interest paid"
        }
      ],
      "title": "How your credit score is built and what moves it",
      "parent": null
    },
    "m_factors": {
      "id": "m_factors",
      "lanes": [
        {
          "id": "score",
          "name": "Scoring model",
          "type": "system"
        },
        {
          "id": "bureau",
          "name": "Credit bureaus",
          "type": "system"
        }
      ],
      "steps": [
        {
          "id": "f1",
          "kind": "start",
          "lane": "score",
          "next": [
            {
              "to": "f2"
            }
          ],
          "uses": [],
          "label": "Payment history is the biggest piece"
        },
        {
          "id": "f2",
          "kind": "task",
          "lane": "score",
          "next": [
            {
              "to": "f3"
            }
          ],
          "uses": [],
          "label": "How much of your credit limit you use"
        },
        {
          "id": "f3",
          "kind": "task",
          "lane": "score",
          "next": [
            {
              "to": "f4"
            }
          ],
          "uses": [],
          "label": "How long your accounts have been open"
        },
        {
          "id": "f4",
          "kind": "end",
          "lane": "score",
          "next": [],
          "uses": [],
          "label": "New applications and the mix of accounts"
        }
      ],
      "title": "What goes into the score",
      "parent": {
        "map": "m_root",
        "step": "c4"
      }
    }
  }
}
```