Credit scoring

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

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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:

  • credit scoring — noun 1. The calculation of a person s credit rating by adding up points awarded according to the person s age, marital status, occupation, address, etc 2. A similar process used to calculate the creditworthiness of a business organization • • •… …   Useful english dictionary

  • credit scoring — A statistical technique that combines several financial characteristics to form a single score to represent a customer s creditworthiness. Bloomberg Financial Dictionary * * * credit scoring ˈcredit ˌscoring noun [uncountable] BANKING ECONOMICS… …   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

  • Credit scoring — Évaluation des risques clients Pour les articles homonymes, voir Évaluation et scoring. L’évaluation des risques clients (credit scoring en anglais) désigne un ensemble d´outils financiers d’aide à la décision utilisés pour évaluer… …   Wikipédia en Français

  • credit scoring —  Computerized method of rating a consumer’s credit worthiness based on income, past credit experience, and debt.  ► “Credit scoring attempts to quantify in a single number, the likelihood a potential borrower will repay his loan.” (Forbes, Dec.… …   American business jargon

  • 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

  • credit scoring — / kredɪt ˌskɔ:rɪŋ/ noun a calculation made when assessing the creditworthiness of someone or something …   Marketing dictionary in english

  • credit scoring — / kredɪt ˌskɔ:rɪŋ/ noun a calculation made when assessing the creditworthiness of someone or something …   Dictionary of banking and finance

  • 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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