Wednesday 19 December 2012

Credit Scores

Credit Scores

Credit scores can be computed in many different ways, and thus, there many different scores. However, all of these scores are based on statistics and data analysis of credit reports. Their reliability in measuring actual creditworthiness is tested by studies that measure the actual future behavior of people, from a sample that is representative of the general population, with their credit score. The goal of any credit score model is to be able to identify as many people as possible that are actually good credit risks, while also identifying the bad risks. If the credit scoring model is too stringent, it may eliminate many people who are actually good credit risks, thus, decreasing profits to lenders because they are eliminating these potential customers who failed to pass the minimum score set by the lender.On the other hand, if the scoring model is too relaxed, it may give

Credit Scores

Credit Scores

Credit Scores

Credit Scores

Credit Scores

Credit Scores

Credit Scores

Credit Scores

Credit Scores

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