Credit Scoring and Benchmarking delves into the methodology used to calculate credit scores, and how scoring and credit reporting is used to assess an individual’s creditworthiness.
Credit scoring was invented in the US back in the 1950s as a way to impartially assess a borrower’s creditworthiness. Since then, the methodology used to calculate credit scores has evolved significantly, leading to the creation of a specialist industry, country-specific scoring systems and an increased interest in credit scores by the general public.
We also examine the legislative framework that governs the use of personal financial data and the recourse avenues available to individuals in relation to their data.
A credit score is unlikely to be the only reference point used by a lender to assess a borrower’s suitability. Typically, institutions will use a score as a starting point to gauge the level of due diligence required to conduct an assessment.
What you will learn
- What is credit reporting and how is it regulated?
- How are credit scores calculated and how do they categorise borrowers?
- What recourse do consumers have with respect to querying items on their credit report?
- How does the use of credit scoring align with responsible lending obligations?
- What is the difference between CDR and CCR?
Recognition of Prior Learning
You will be awarded a Certificate of Completion. It will be available online for you to download and print immediately.