Method of loan assessment carried out by scoring
the various answers given on a loan application.
Positive scoring can be as simple as having a home phone. Having credit cards
can give a positive score also but having too many can go the wrong way and
start to lose you points. Too many addresses or employers over a given period of
time can be detrimental to your score but something as simple as a cheque
guarantee card can make the world of difference.
Lenders protect the secrecy of their particular scoring system to stop people
Almost all loan applications are credit scored and as a result it becomes
essential for all questions on any application to be fully completed Missing
answers on an application will normally result in the maximum negative score
being allocated to that question.
Credit scoring for a personal loan is more stringent than for a mortgage as the
overall security for the lender is lower with a personal loan the lender does
not normally have anything to repossess