Credit scoring

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Credit scoring

  1. 1. Credit Scoring
  2. 2. Credit scoring A credit score is a numerical expression based on a statistical analysis of a person's credit files, to represent the creditworthiness of that person. A credit score is primarily based on credit report information typically sourced from credit bureaus.
  3. 3. USES OF CREDIT SCORING  Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt.  Lenders use credit scores to determine who qualifies for a loan, at what interest rate, and what credit limits.  Lenders also use credit scores to determine which customers are likely to bring in the most revenue  Credit scoring is not limited to banks. Other organizations, such as mobile phone companies, insurance companies, landlords, and government departments employ the same techniques.
  4. 4. SOME FACTS ABOUT CREDIT SCORING The use of credit or identity scoring prior to authorizing access or granting implementation of a trusted system. credit is an Credit scoring also has a lot of overlap with data mining, which uses many similar techniques.
  5. 5. 5 Cs of Borrowers in credit scoring
  6. 6. A simple example of credit scoring
  7. 7. Credit Scoring at different stages
  8. 8. Marketing Score (4Ps)
  9. 9. Application Scoring
  10. 10. TYPES OF SCORING Targeted Scoring Internal and external scoring Counter party and facility scoring

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