Credit scoring – what is it all about Smartmind Credit
A lot of people are wondering about this issue. It should be emphasized that there are plenty of people who do not know what credit scoring is. If you have similar, it’s really worth reading today’s article.
Credit scoring – what is it all about
It should be emphasized that credit scoring is a method that consists in assessing the credibility of a particular entity that applies for a loan at a given bank. This entity can be ordinary natural persons or entire enterprises. It is worth noting that the result is presented in the form of points. What do you need to do to get a loan? Banks that use this method promote people who receive the most points. The greater the result, the greater the creditworthiness of the potential borrower. It should be noted that we distinguish various types of this method. Among other things, this is behavioral scoring . Points are awarded here based on an individual’s credit history analysis. The data can be found, for example, in BIK. The Credit Information Bureau contains necessary news on this subject. It is impossible not to mention that there is a chance to find, for example, data on previous short-term loans, cash loans, consolidation loans, etc. I guess no one needs to be convinced that a positive credit history is very good for the bank and the perception of a particular person.
It is also worth mentioning the application method. Here, points are awarded based on various data of the potential borrower. The points are added up after calculating all the information – they then allow you to assess whether or not the loan is associated with the risk. It is worth noting that really different issues are taken into account. I am talking here about the profession, education or even the borough of a borrower. Of course, there are also points combined with monthly revenues and current liabilities. It is also worth paying attention to the fact that banks are interested in the period of employment with a specific employer. Of course, the greater the stability in this regard, the better for the possible borrower. You must be perfectly aware of this fact.
What is all this for?
It is good to know that banks want to compare the profile of a specific person to all those who have already been granted loans by all means. Of course, it is best if the specific characteristics are similar to borrowers who regularly pay their debts. It is a signal for the bank that a given person will probably do the same. Then the chances of getting a loan are really great.