Introduction: Why Credit Scoring Matters More Than Ever Your credit score is one of the most important numbers in your financial life. It determines whether you get approved for a loan, what interest rate you’ll pay, and even if you qualify for a mortgage or credit card. But in 2025, traditional credit scoring systems like FICO and VantageScore are being challenged by a new disruptor: Artificial Intelligence (AI). AI is transforming how lenders evaluate risk, approve loans, and set terms. Instead of relying only on outdated models, financial institutions are adopting AI-driven credit scoring systems that consider broader data points, analyze patterns in real time, and reduce biases in lending decisions. In this article, we’ll explore how AI is revolutionizing credit scoring and loan approvals in the US , what this means for borrowers, and what risks you need to be aware of. The Limitations of Traditional Credit Scoring For decades, US banks and lenders have used FICO scor...