What is Credit Scoring?
by admin on 03/10/08 at 6:11 pm
Credit Scoring is a score that is given to applicants for loans from banks to give the opportunity to pay their debts of credit applicant. It is perhaps a little as cynical, but for the banks is quite efficient as a system. This does not mean that you rely only on this score to assess your reliability in repaying funding.
The credit scoring (score of acceptance)
Credit scoring is a system used by banks and financial intermediaries to evaluate the creditworthiness of the consumer. The system combines a number of their information in order to reach a score of acceptance (by the lender subject) about the credit risk of the applicant in a given period of time. Depending on the score, he draws useful to accept or reject the funding, the amount of funding and the interest rate.
The most relevant information used were of four types: a) those relating to the applicant (for example, disposable income and the work done) b) with respect to the characteristics of the financing to be disbursed (e.g., duration and amount of funding); c) those relating to the welfare fund from d) with respect to the degree of indebtedness of the credit applicant, surveyed, for example, the central risk private.
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