credit scoring

Credit scoring

A statistical technique that combines several financial characteristics to form a single score to represent a customer's creditworthiness.
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Credit Score

A measure of an individual's creditworthiness. Credit scoring involves the quantification of a variety of factors in an individual's background, including a history of default, the current amount of debt, and the length of time that the individual has made purchases on credit. Banks and other financial institutions may use a credit score to determine whether or not an individual is likely to default on a loan, mortgage, or other debt. The FICO score is the most common credit score in the United States.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

credit scoring

see CREDIT RATING.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

credit scoring

The process of rating potential borrowers based on their overall credit history, current debts, and frequency of application for credit.The most commonly used score, by far, is the FICO score.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
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