credit scoring

credit scoring
A statistical technique that combines several financial characteristics to form a single score to represent a customer's creditworthiness. Bloomberg Financial Dictionary

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credit scoring ˈcredit ˌscoring noun [uncountable] BANKING ECONOMICS
the activity of calculating the risk that someone asking for a loan will not make the necessary repayments when they should, which involves asking the person questions about their job, how much they earn etc:

• Most lenders have cut costs by moving to a credit scoring system to assess how likely you are to default on a loan.

— credit score noun [countable] :

• The banks will typically charge between 7 and 11 per cent depending on your credit score.

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credit scoring UK US noun [U] FINANCE
► CREDIT SCORE(Cf. ↑credit score): »

The exact amount of interest you pay will depend on your credit scoring.

► the process of calculating credit scores: credit scoring systems/techniques »

The agencies use different credit scoring systems to allocate points according to age, job, whether you are a homeowner, and your financial standing.


Financial and business terms. 2012.

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Look at other dictionaries:

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  • Credit scoring — A statistical technique wherein several financial characteristics are combined to form a single score to represent a customer s creditworthiness. The New York Times Financial Glossary * * * credit scoring ˈcredit ˌscoring noun [uncountable]… …   Financial and business terms

  • Credit Scoring — A statistical analysis performed by lenders and financial institutions to access a person s credit worthiness. Lenders use credit scoring, among other things, to arrive at a decision on whether to extend credit. A person s credit score is a… …   Investment dictionary

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  • credit scoring system — A statistical system used to determine whether or not to grant credit by assigning numerical scores to various characteristics related to creditworthiness. American Banker Glossary …   Financial and business terms

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  • Credit-Scoring-Verfahren — mathematisch statistisch fundiertes Verfahren zur ⇡ Kreditwürdigkeitsprüfung und Risikofrüherkennung im Kreditgeschäft; angewandt im Konsumenten und im Unternehmenskreditgeschäft. Es werden die Unterschiede zwischen guten und schlechten… …   Lexikon der Economics

  • Credit scorecards — are mathematical models which attempt to provide a quantitative estimate of the probability that a customer will display a defined behavior (e.g. loan default, bankruptcy or a lower level of delinquency) with respect to their current or proposed… …   Wikipedia

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