Glossary
What is Credit scoring?
Risk
Credit scoring is the technique of assigning an applicant a score that estimates their likelihood of repayment, combining internal data with external sources such as credit bureaus, behavioural data and alternative data. That score feeds the lending decision alongside policy rules.
How it works in practice
A score rarely decides on its own: it is combined with hard rules (age, current delinquency, watchlists) and with cut-offs by segment. A good engine shows which variables drove each score, so the decision can be explained and audited.
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