credit scoring
Borrower risk assessment
Credit scoring is the practice of calculating a numerical rating that represents a person's creditworthiness—their likelihood of repaying borrowed money.
Lenders use credit scores to decide whether to approve loans, credit cards, or mortgages, and at what interest rate.
The score typically draws on payment history, outstanding debts, and length of credit history: Her credit scoring came back strong enough to qualify for the lowest rate.
- payment historyRecord of past transactions
- creditworthinessAbility to repay debts
- data privacy lawsStatutes governing personal information collection
- debt-to-income ratioPayments divided by earnings
- loan underwritingAssessing borrower creditworthiness
consumer rights · underwriting · algorithmic bias · personal loans · fair lending · interest rates · risk assessment · Experian · decision trees · FICO · subprime · TransUnion · lender · mortgage · hard inquiry · neural networks · approval · debt
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