Glossary entry

Credit scoring

Credit scoring uses statistical models to assign a score indicating the likelihood of repayment, supporting automated and consistent credit decisions.

How it’s used

Eligibility and risk banding
Pricing tiers and approval thresholds
Referral rules for edge cases

Governance matters

Store the score inputs, model version, and outcomes to support explainability and audit requirements.

Related terms

Credit decisioning Risk-based pricing

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