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How are application scores calculated?

Application scores are calculated by adding together the weighted values of each variable in the score.

This concept is best illustrated with an example. Let's say you define an application score called "Application Score" which uses PAYDEX® Score and Commercial Credit Score Percentile.

Application Score

Variable	Weight	Low	High	Points
PAYDEX® Score	60%	0	40	0
		40.01	50	2
		50.01	60	4
		60.01	70	5
		70.01	80	6
		80.01	100	10
CCS Percentile	40%	0	30	0
		30.01	50	2
		50.01	71	6
		71.01	91	8
		91.01	100	10

If a credit applicant's PAYDEX® Score is 64.26 and CCS Percentile is 70.22, then the "Application Score" would be calculated as follows:

PAYDEX® Score of 64.26 is between 60.01 and 70 and PAYDEX® Score is weighted 60%, so PAYDEX® Score is given 3.0 weighted points.

Variable	Weight	Low	High	Actual	Points	Weighted Points
PAYDEX® Score	60%	0	40		0
		40.01	50		2
		50.01	60		4
		60.01	70	64.26	5	60% x 5 points = 3.0
		70.01	80		6
		80.01	100		10

CCS Percentile of 70.22 is between 50.01 and 71 and CCS Percentile is weighted 40%, so CCS Percentile is given 2.4 weighted points.

Variable	Weight	Low	High	Actual	Points	Weighted Points
CCS Percentile	40%	0	30		0
		30.01	50		2
		50.01	71	70.22	6	40% x 6 points = 2.4
		71.01	91		8
		91.01	100		10

The weighted points for each variable in the score are then added together. In this example, PAYDEX® Score has 3.0 weighted points and CCS Percentile has 2.4 weighted points. Adding both weighted points together gives a final "Application Score" of 3.0 + 2.4 = 5.4 points.

Variable	Weight	Low	High	Actual	Points	Weighted Points
PAYDEX® Score	60%	60.01	70	64.26	5	60% x 5 points = 3.0
CCS Percentile	40%	50.01	71	70.22	6	+ 40% x 6 points = 2.4
						Application Score 5.4