In this part we will explore how different countries utilize credit scoring. We will start our analysis with a general description of credit scoring and then we will deal with different country practices starting with United States. According to an article quoted to Wikipedia, credit score is a numerical expression based on a statistical analysis of a person's credit...

Well, the answer is: Numerous. In order to make a comment about the methods used for credit scoring, one has to know the idea behind credit scoring. Moreover, the processes involved in building a model for credit scoring also entails knowing the possible methods that can be used. Because some of the methods used has advantages in one area but drawbacks in other areas...

To give the issue a sense of an academic taste, we can refer to Loretta J. Mester who is a vice president and economist in the Research Department of the Philadelphia Fed. She is also the head of the department's Banking and Financial Markets section. In her article which is named as “What’s the Point of Credit Scoring?” Loretta J. Mester introduces credit scori...

Credit scoring is a procedure where an institution or an individual is evaluated based on its past payment patterns. In today’s highly globalized environment credit scoring is getting important day by day. It is important firstly, because it reduces the time and energy spent when evaluating a customer to give credit or enter into a transaction. The counterparty whic...

Any people know ways to increase their credit score, but what factors actually lower your credit score? 1) Accounts that have been open less than three years. Having long term credit accounts that you consistently pay on time is an important indicator of stability. As your credit history ages, your score should increase. 2) Anytime your credit report is pulled. ...

Having bad credit can definitely be a problem, especially when you’re trying to buy a house or a condo. Under current market conditions, it will become a little harder to get many offers on mortgages - especially since some of the sub-prime lenders have taken a serious hit. You should know, though, that there still are some lenders who are looking to lend money were...

Although there are several scoring methods, most lenders use the FICO method from Fair Isaac Corporation. Each of t­he three major credit bureaus (Experian, Equifax and TransUnion) worked with Fair Isaac in the early 1980s to come up with the scoring method. A credit score is determined much like a grade in school. Consider how a teacher calculates grades by takin...