Credit Cards » Glossary

Glossary

Credit Scoring

Credit scoring is a means of assessing the financial reliability of a consumer. Credit bureaus use three main criteria in arriving at your credit score, which is generally regarded as an objective evaluation of your financial standing. Firstly, the credit bureau reviews your credit history. Next, your current financial status is factored in, including any outstanding balances and loan amounts available to you. Thirdly, the credit bureau looks at your income relative to your current debt to assess your ability to repay the debt.

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