Score Engl
The score, in the context of credit, refers to the assessment of a potential borrower's creditworthiness. This assessment is a crucial step in the credit check process. It provides an objective basis for assessing credit risk.
The creditworthiness of a borrower is represented by the score in the form of a rating. This rating is based on an established rating system similar to the approach used by leading rating agencies such as S&P, Moody's and Fitch.
The score itself is based on a variety of parameters that reflect the financial stability of a borrower. These include aspects such as credit history, financial circumstances, income and other relevant factors. Thorough analysis of this data provides a comprehensive assessment of creditworthiness. Higher values of the score indicate better creditworthiness, while lower values indicate higher credit risk. A high score usually signals a lower probability of default, whereas a low score indicates a higher credit risk.