What is a credit score
A credit score is really a numerical expression determined by a statistical analysis of a person's credit files, to represent the creditworthiness of this person. A credit rating is primarily based on credit file information, typically sourced from credit agencies . Lenders, such as banks and credit card issuers, want credit scores to gauge the possibility risk caused from lending money to consumers and also to mitigate deficits due to bad debt . Lenders use credit scores to determine who qualifies for a loan, at what rate of interest, and what credit limits. Loan companies also use credit scores to find out which customers are likely to bring in the most revenue. Using credit or identity scoring prior to authorizing access or granting credit is definitely an implementation of a trusted system . Credit scoring is not limited to banks. Other organizations, such as phone companies, insurance companies, employers, landlords, and government sections employ exactly the same techniques. Credit scoring also offers a lot of overlap with data mining , which uses many similar methods.