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.

Look at other dictionaries:

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  • 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