The use of credit scores will give you the confidence to approve more loans and with reduced risk.
Scorecards are mathematical models for assessing the creditworthiness of individuals and legal entities. The model is represented as a set of weights assigned to customer’s characteristics that affect his creditworthiness or any other target behavior modeled by the scorecard. This approach can be used mainly in business where users are charged by consumption and there is a need to rate the credit risk per user. The final assessment, known as score, indicates whether a user defined by some typical characteristics will be able to pay back his liabilities. It is based on a complex mathematical model relating users’ characteristics, payment history and behavior.