Credit Scoring
/ˈkrɛdɪt ˈskɔːrɪŋ/
Definitions
- (n.) The process by which a financial institution or lender evaluates an individual's creditworthiness using a statistical model to predict the likelihood of loan repayment.
The bank used credit scoring to determine the applicant's loan eligibility.
Forms
- credit scoring
Related terms
See also
Commentary
Credit scoring models must comply with nondiscrimination laws to prevent unfair bias in lending decisions.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.