Credit Scoring A system used by lenders to calculate the statistical probability that a loan they grant to you will be repaid.
Different lenders have slightly different rules for assessing risk.
Each lender works out the characteristics of 'good' and 'bad' customers, based on its past experience. Homeowners or borrowers with steady incomes may be considered less likely to default. Each answer you give on your application form will be given a rating. If the total 'score' is above a certain figure, your application is accepted. Because credit scoring is the key to different lenders risk management they do not easily reveal the precise details of how it works.