Credit Score

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A Credit Score is a Score assigned to a Credit Application.



  • (Mester, 1997) ⇒ Loretta Mester. (1997). “What’s the Point of Credit Scoring.” In: Federal Reserve Bank of Philadelphia Business Review 3-16.
    • Credit scoring is a method of evaluating the credit risk of loan applications. Using historical data and statistical techniques, credit scoring tries to isolate the effects of various applicant characteristics on delinquencies and defaults. The method produces a “score” that a bank can use to rank its loan applicants or borrowers in terms of risk.