It is a generic Anglo Saxon term to define the action of assessing the risk of credit failure by a statistical score. To do this, banks use all credit-related information taking into account all the data they have about the person. The information collected is annotated and indicates a qualitative value.
This value is called a “score”. The result indicates how likely you are to repay the credit without any problems. This allows banks to make a decision and under what conditions, determine whether they are entitled to the requested credit (security, interest).
Why do banks use this scoring process?
All credits authorized by banks are not always repaid on time and in full. Scoring allows you to assess how likely you are to repay your credit. This avoids useless risk for both parties.
Thanks to scoring, banks are able to make an objective decision regarding the right to a credit with the guarantee that each credit application is treated according to the same rules. Scoring allows for a neutral and reliable decision.
What data are used?
It is the data you provided when placing your credit order that is used to establish the scoring. Thus the details regarding salary and professional activity are taken into account.
Previous credit experiences are also important. How to know if you have successfully repaid your credit to a bank.
Further data are obtained with your agreement with information agencies such as ZEK. This communicates to banks information about credits, such as the number of loans in progress. You have the possibility to know the information that is registered to your subject on the website.
At the time of scoring, it is not a single piece of information that determines the acceptance or not of a credit, it depends on a combination of factors available.
Your salary, the number of people who are dependent on you as well as other payment obligations will also be taken into account.
How can I improve my scoring?
The quality of your scoring depends on different factors that you can influence. You can influence your scoring by communicating to your bank correct and current information about your personal and financial situation.
You can contribute to achieving good scoring by adopting a responsible attitude towards financial commitments. Credit debts must always be in a certain balance with your salary.
You can also positively influence your scoring by regularly paying your existing credit obligations and paying your bills on time.
Data taken into account for scoring:
Your salary status – Salary and other extra wages – Expenses – Existing financial commitments – Rental
Status of your activity
- Time of employment
- Permits that have
Experiences in former commercial activities
- Regular repayment of other credits
- credit cards
Information from clarification agencies
- ZEK information regarding other credits, leasing, credit cards
- Information from the institute of tours