Credit Scoring

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Description of Credit Scoring. Explanation.

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Definition Credit Scoring. Description.


Credit Scoring refers to the mathematical techniques used for ranking the creditworthiness of individuals, businesses and organizations. The result is called a credit rating.


Credit bureaus and credit reporting agencies provide credit information to creditors, such as banks and businesses, to help them decide whether to issue a loan or extend credit. Well-known rating agencies include Dunn & Bradstreet, Standard & Poor’s, Fitch, and Moody’s.


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