Today, there is probably no person who has not applied to a bank for credit funds at least once in his life. But financial institutions are responsible for assessing the creditworthiness of the borrower and analyze personal data, which is why some can easily get the amount he needs, while others are regularly refused. Surely, everyone wondered why this is happening and on the basis of what data banks make decisions. In fact, the credit rating system is called credit scoring. What is bank scoring? Let's try to find the answer.

Why scoring is needed

So, before answering the question of what scoring is, let's start with the fact that over the past few years the banking system has changed a lot, loans have become massively available to people with different incomes and social status. On the one hand, this is good, because the bank thus increases its income, has the opportunity to develop and make a profit, and the client, in turn, receives the funds he needs, this relieves him of the need to save money for years for large purchases.

In this regard, it is almost impossible for bank employees to consider all applications on their own. That is, to check the creditworthiness of their customers, assess the degree of their risks and make a decision, so today this is done by an automatic system. Credit scoring is a mathematical model for assessing the solvency of a potential borrower based on his data. The main task of the employee is to collect the necessary information about customers and upload them to the system, and it automatically analyzes.

Scoring is a system that allows, based on the data provided by the client, to draw up a portrait of the client as a borrower, that is, it is based on those calculated in statistical methods, thanks to which it is possible to assign a score.

By the way, it is worth noting that exactly how the system evaluates the creditworthiness is kept under the strictest confidence. That is, the client cannot know for sure what exactly the system takes into account, and what parameters make it possible to judge his creditworthiness.

Scoring: definitions

What parameters to take into account the system

It should be noted that the scoring system allows the bank to minimize the risks of non-repayment of borrowed funds, increase the loan portfolio, and reduce the time for issuing a loan. That is why they use a scoring model to completely eliminate the human factor when assessing the behavior of a potential borrower. A scoring model is a system for constructing an assessment of a borrower's creditworthiness based on several parameters.

When applying to a bank for a loan, borrowers fill out a questionnaire, or rather, a loan officer enters the borrower's data into the program. That is, his documents and other information and from the words of the client. Consider several parameters that are involved in the scoring system:

• passport data;
• Family status;
• age;
• presence of children, their number and age;
• monthly income;
• place of work and position;
• the number of entries in the work book;
• ownership of property: real estate or cars;
• existence of other credit obligations and other encumbrances.

This, of course, is not all the information that the borrower provides to assess its reliability. However, in addition to assessing personal data, the bank refers to the client's credit history, and therefore, credit bureaus offer banks additional scoring models based on the data they hold. That is, in simple words, the volume of loans issued in recent years has increased several times, respectively, each potential borrower already has debt obligations to other creditors, which means that at any moment he may find himself in a debt hole and be insolvent.

With the help of the Credit Bureau, you can recognize what kind of credit burden is assigned to a potential borrower and assess the likelihood of delinquency and non-payment of loans. The automatic system processes information about a potential borrower and assigns him a certain rating, creditworthy ones get the highest score, and insolvent ones get a low rating.

For example, a borrower who has not defaulted in the past is assigned a score of 1. A score of 9 indicates the formation of a bad debt sued. Score code 7, what does it mean? And this only means that the borrower regularly violates the terms of the contract, but eventually pays in full. The most reliable are customers with grades 1 and A, that is, those borrowers who have not allowed loan delinquency for up to 1 month.

In addition, the Credit Bureau provides the bank with automatic information about its customers, namely about opening new accounts with other banks, obtaining new loans, changing personal data, including passport data, about the formation of overdue debts and other changes. The only drawback is that one bureau transmits information to those banks with which they have an agreement, respectively, information is not distributed to all credit organizations.

Scoring points

A scoring score is an assessment of the client's creditworthiness, which, based on the totality of the data provided by the client, gives a certain result on the conduct of analytical and mathematical calculations. Points are awarded for all personal data of the borrower, for example:

1. The age of the borrower plays an important role in issuing a loan, borrowers under the age of 20 and over 60 receive 15 points, the maximum score is given to a client aged 30 to 35 years 114 points, clients aged 50 to 60 years old are estimated at 97 points.
2. Banks give more preference to married clients, they are assigned 115 points, a low score is given to spouses who live separately 30 points.
3. Families without children get more points 87, with more than 3 children only 4.
4. As for employment, the maximum score is given to employees of commercial companies - 124 points, the minimum score will be given to a pensioner - 19.
5. Borrowers in managerial positions receive a high credit rating of 122 points, the minimum for employees without qualifications is 3.
6. Clients with more than 5 years of work experience receive 89 points, without work experience 6 points.
7. As for wages, the higher it is, the more points, for example, with a salary of more than 40,000 rubles, the borrower receives 198 points, up to 5,000 rubles only 9.
8. For the presence of a landline home phone, the client receives 36 points, for its absence - 7.
9. If you own a car of foreign production 115 points, in the absence of a car 7 points.

So, in the future, all ratings issued by the system are calculated and an overall credit rating is issued, it determines whether a loan will be issued or not. The rating scale is distributed as follows:

1. A score of 300 to 500 points indicates the low reliability of the client, who will be denied a classic loan, he can count on a microloan from a microfinance company at most.
2. From 500 to 600 points indicate a low creditworthiness of the client, but he has a chance to get an expensive loan from a bank at a high interest rate for a small amount.
3. 600-650 points - satisfactory creditworthiness of the borrower, the bank is ready to provide a loan on more stringent conditions, with an increased interest rate and collateral.
4. 650-690 points - a good creditworthiness of the borrower, there is every chance to get a loan on standard terms.
5. 690-850 - a high assessment of the client's creditworthiness, banks issue a loan on the most favorable terms for a large amount with low interest rates.

By the way, it is worth paying attention that the bank has the ability to refuse to issue a loan without giving reasons. This mainly happens if the scoring score is less than 500 points.

How do banks decide whether to grant a loan?

So, when contacting the bank or using an online application, the client leaves his data, on the basis of which the system evaluates the potential of the borrower, reveals whether he can become a potential debtor. For example, if 8 out of 10 borrowers with similar parameters had delays in loan payments, then this may already be the reason for refusal to issue a loan, respectively, the lower the percentage of non-payers, the more likely the borrower to get the desired loan.

It is much more expedient to apply for a loan directly at the bank, when an employee enters your personal data on their own based on the documents you provide. Here you have the opportunity to learn about the issuance of a loan almost instantly. At the end of the procedure for filling out the questionnaire, a bank employee can announce to you that the scoring has been passed, what does this mean? And this only means that the system, based on the data you provided, gave a high solvency result, and then your documents are transferred to the security service for authentication and a final decision.

Things will be much worse if you receive a scoring refusal, that is, when the system gave you the lowest score or your personal data raised doubts among a bank employee. In the future, either you will instantly receive a loan refusal, or your data will be transferred to the bank's security service. By the way, it is worth noting that if you provided false information or falsified documents, then bank security officers may well transfer them to law enforcement agencies to initiate a criminal case.

Can deceive the automatic system

In fact, to this day, the system of automatic assessment of the client's solvency is imperfect, that is, it cannot guarantee a 100% result and accurately assess the client's solvency. In addition, it is constantly updated and modernized, and even bank employees do not know exactly how the evaluation algorithm goes, because this data is kept in the strictest confidence.

It is also worth noting that it is almost impossible to deceive the system because, otherwise, you risk your freedom, for the reason that the bank can quite rightly accuse you of fraud. After all, in any case, your documents will be provided to the security service to verify the authenticity and reliability of the data you provide.

But each borrower has a chance to improve his credit rating, for this you need to provide the bank with the maximum number of documents confirming your financial solvency and solvency. These include documents for ownership of real estate and a car, a certificate of additional income, and finally, a surety or pledge can significantly increase your creditworthiness.

To summarize, today the fate of a potential credit partner for a bank is determined by an automatic system. But, on the other hand, it allows borrowers to get a loan decision in a short time. In addition, a bank with a large volume of loans issued does not have the physical ability to check each borrower.

Probably, no one will be against the fact that the most important (it is also the first) problem for any new borrower is to go through the bank scoring procedure, that is, to get approval of the submitted application for a credit card. Sometimes a lot depends on this - your plans and dreams, so it's doubly insulting when they break down for reasons you don't understand.

Another variant of the manifestation of a similar problem is obtaining a credit limit sufficient in size. The fact is that the card itself will most likely be easily issued to you at any bank, but the credit limit (recall, it is determined individually) can be set very small, literally, several thousand rubles, which may not at all correspond to the level of your expectations and needs .

Both of the above situations have the same basis - this is the decision of the bank after analyzing your potential solvency. By understanding this correctly, you can increase your chances of successfully getting approved for a loan of the right size. But, let's consider everything in order.

All programs (or underwriting) analyze the personality of the borrower, taking into account many factors. Experts say that they use several thousand criteria and variables from which they build entire mathematical models of your potential behavior. It may very well be that this is exactly what is happening, only for you and me it is a dark forest, we do not know this formula, but we do not need it. After all, the whole process can be represented much more simply if it is decomposed into quite obvious elements.

First, the bank must see our income, from which we will repay the debt. Secondly, to assess our adequacy and capacity.

Everything else is just particulars. For example, the absence of a bad one, screening out various kinds of scammers, checking the specified information, calculating risks, and so on. And since you are, we hope, a good borrower, with no bad intentions or old debts, these questions should not bother you at all.

Getting approval for a loan application

The main thing, when passing the scoring procedure, is the correct indication of the level of your income and the appropriate behavior during a conversation with a bank employee, both by phone and in person.

As a rule, in order to receive a credit card, you first fill out an online form. It contains all your data (name, address, contacts, documents, monthly income level, ownership, and so on). And here it is worth paying attention to a very important point. It is necessary in all possible ways to tell the bank about your solvency. In the sense that the requested loan is not the goal of your whole life for you, but serves only as a small bonus to the issued bank card.

Ideally, it would be better not to ask for anything at all - the bank itself will give you as much as you did not ask for, it has been checked repeatedly. After all, as has been said more than once, bankers love to lend money to people who do not need them at all, so there are fewer risks for them. But, back to your application.

How can you prove your ability to pay? Of course, the main criterion is your income. Most often, a salary, but there are still a lot of other sources of cash flow. And the more you have, the more the bank likes you.

Firstly, it is worth telling in the questionnaire about all your part-time jobs. Maybe you give lessons, consult, repair something or compose songs to order, even if you don’t have documentary evidence of these incomes, but the very fact of their indication will definitely play into your hands, show you from a profitable side that you know how to make money different ways. Secondly, if you have an extra apartment or car, you need to indicate that you are renting it out. This will not surprise anyone now, renting out property is a guaranteed and stable income, and the bank also understands this. Thirdly, you can use such a technique as “salary in an envelope”. The phenomenon from the point of view of the law is not entirely correct, but a huge number of organizations and enterprises in our country work in this way. Therefore, if you say that some part of your main income at the place of work goes "past the cash desk", you are likely to be believed.

Thus, you can significantly increase the amount of your official income. Even if you have only one certificate from work (and then if it is requested,) and not very impressive, all your other income will also be taken into account when considering your loan application. Maybe to a lesser extent and with some reduction factor, but they will. That same complex mathematical scoring model, which was mentioned above, is needed for that, because it can work with different types of incoming information.

In addition to the level of income, bank questionnaires often contain other items that indirectly tell about your financial capabilities. This is, for example, information about your property and trips abroad.

In fact, if you have an apartment, a dacha and a car, then your reliability for the bank increases many times over, and if you have a lot of property, then they may even forget to ask you about income - why should a person who has ten apartments work? Therefore, do not forget to include all your high-value real estate and other property in the loan application.

The same is true with overseas travel. The more often you have been abroad over the past year or two, the more reason the bank has to trust you. Still, traveling is not a cheap pleasure, and even if you traveled on a very budget, present this fact as vividly as possible. This is the situation when the story is more important than the essence. It's still impossible to check, just don't get carried away.

We figured out the money, now it remains to touch on the psychological side of the issue. This is important, and here's why. For example, you can correctly fill out a questionnaire on the site, but show yourself not in the best way in a telephone conversation or come to an interview at a bank in dirty and torn clothes with a smell of fumes from your mouth. This is, of course, an exaggerated situation, but it conveys the essence. In personal communication, you must visually confirm your previously described image, both in terms of income and the adequacy of behavior.

It is no coincidence that in most cases a credit card is issued only after an interview with the borrower: either by phone or at the bank office, or the bank courier brings the card to your home or office address. This is necessary in order to evaluate your appearance, competent speech and courtesy in communication - such items are contained in the resume that the bank employee adds to your application.

In order to successfully pass this part of the tests on the way to the coveted prize - a credit card - you should look neat, radiate confidence, speak calmly and kindly, that is, do everything in your power so as not to leave the bank in any doubt about the correctness of the decision.

By the way, the exact size of the credit limit is often determined at the very last moment - after personal communication with the client. Here is another reason why this part of credit scoring should not be approached carelessly.

As you can see, getting an approved loan is very easy. You just need to send an application. And if you did everything right: you told the bank in as much detail as possible about all your actual and potential income (even if not all of them are regular and not all of them are present at the moment), presented yourself as a person firmly standing on his feet (who needs a credit card insofar as), had a polite conversation with a bank clerk, then be sure that the decision will be positive. And the better you cope with each part of our recommendations, the larger the size of the credit limit will be made for you, maybe the maximum possible.

Are you planning to apply to a banking institution for a loan, but at the same time you are afraid of getting a negative decision on your application? In our today's article, you can find out exactly how banks check their potential borrowers, what kind of scoring procedure it is, and how to go through it.

What is scoring?

In most cases, banks do not have time for long lengthy checks of borrowers. As a result, with small loans, companies include a couple, and in some cases a couple of tens of percent, in the final loan rate.

At the same time, offers appear on the market with rates of 35%, 50%, 75%, or even 100% per annum. It is not profitable for banks to wait for a long response from the tax service, since any request is made in writing.

Scoring is a system used by banks to determine the solvency of an applicant. Some programs have an auto-improvement feature through continuous review of previous customer evaluation results.

Such services help banks spend less time processing personal data and preparing decisions about its creditworthiness. In addition, this reduces the burden on staff, excludes some options.

Such a check is very convenient for express lending, when it takes a minimum of time to check a potential client.

What does the check include:

• Clarification of the client's CI in the company itself, as well as in other credit institutions through credit bureaus.
• Conducting an analysis of the number of recent jobs and their quick change, that is, the bank may have doubts when issuing a loan, if, for example, over the past six months, the client has changed 3 jobs.
• Carrying out job site analysis, as well as calling employees and managers.
• Field inspection at the workplace, if necessary;
• Checking the certificate of income in the form of 2-NDFL, which is described in detail.

When scoring is launched, the loan officer gives his assessment of the borrower in his program. For example, negative factors may include dirty clothes, inappropriate behavior or incoherent speech. The manager's mark is one of the most important factors that influence the verification of the client.

Points are assigned based on the information provided. Evaluated:

• passport details
• residential address and
• education
• Family status
• income and place of work
• having extra income
• purpose of the loan

The scores are then summed up and a decision is made:

• Issue a loan
• refuse
• Raise your interest rate
• Reduce amount
• Perform an additional check

All clients go through the verification procedure, only for express loans this procedure is simplified and takes no more than 20-30 minutes, and when applying for a mortgage, checking your application and the correctness of the data provided may take a week for a loan officer.

How is creditworthiness checked?

It is determined by a certain formula, which is compiled by each bank (various variables are included). However, there are some common features.

The amount of the monthly payment should be up to 50-60% of the potential borrower's income after deducting all mandatory fees. In other words, banks evaluate only those incomes that you can document, in words it will not be possible to prove solvency.

The following are deducted from income:

• equal to 13%.
• average rent (from 5 to 10 thousand depending on the region).
• expenses for children and other dependents (about 7500 for each).
• other obligatory payments (alimony, court payments, existing loans, mobile phone, Internet, etc.).

There are several ways to increase your solvency:

• report additional income (an apartment rental agreement, 3-personal income tax, a deposit agreement, a certificate of receipt of benefits, etc.).
• attract co-borrowers,
• provide for security.

Are guarantors and co-borrowers checked?

The income of co-borrowers or guarantors is taken into account to calculate the possible monthly payment amount. Those who vouch for you must also prepare a complete set of documents and pass through a scoring test.

Co-borrowers are subject to compulsory recovery without any additional procedures, and to guarantors only after a judicial act. The spouse is usually the co-borrower.

The co-borrower or guarantor must meet the following criteria:

• officially employed
• earns more than the regional average
• has no debt on credit cards and other loan agreements
• is not under investigation and has never been convicted in economic cases.

In other words, if you are planning to increase your total income in order to receive a larger loan, you need to look for a co-borrower with a positive reputation. If you attract a guarantor with a damaged CI, and yours is good at the same time, then you may still be refused.

Why You Shouldn't Submit Many Applications to Different Banks at Once

Some applicants think that if they send more applications to different financial institutions, they will receive several answers from which they can choose. However, there are some downsides.

Banks see a lot of requests that are displayed in the credit history. They may assume that a person will accumulate a lot of loans, and subsequently will not be able to cope with payments on them, which will lead to

Olga Zinkevich,
Deputy Director of the Directorate of Retail Business and Plastic Cards of the Industrial Construction Bank:

When determining the credit limit for clients, our loan officers use a special scoring program. The Industrial Construction Bank began to use this technology on a massive scale in 2001.

The used scoring program was developed and modified exclusively by PSB's own specialists.

The consumer loan portfolio of our bank is characterized by good performance, the percentage of overdue debt, as a rule, does not exceed 0.6-0.7% of the volume of current debt.

In our opinion, the effectiveness of the scoring system can be assessed using indicators of profitability and profitability of the loan portfolio. The percentage of non-return is, in principle, a secondary indicator in such conditions, since the main task of the bank is to ensure a given profitability with a fixed level of risk.

Whether it is possible to learn how to cheat a scoring program depends on how thoughtful ("protected") this program is, as well as on what indicators it uses in its work. For example, if only documented information is used, then, of course, it is practically impossible to deceive such a system. If a significant part of the questions refers to information that is difficult to verify directly when filling out, then the client may try to “cheat” the scoring.

Firms that provide services to assist in filling out questionnaires can in practice be divided into two groups. The first group provides the usual consulting assistance in filling out documents. In principle, a client could receive exactly the same help from a bank loan officer. The second group are firms that tell the client how best to deceive the bank. As practice shows, the services of the latter rarely lead to a positive result, since deliberately false information is detected quite easily, and the client is ultimately refused.

Unfortunately, such organizations have become quite widespread in large cities of Russia. This is primarily due to the population's traditional fear of financial institutions, as well as a low level of awareness and knowledge of the specifics of banking.

Maxim Chernushchenko,
Vice President of Investsberbank:

Our bank uses a credit decision-making system with the participation of statistical models for assessing the borrower. The system was developed by the specialists of our bank and has been operating since the emergence of mass consumer lending in the bank.

Our system is a sophisticated computer program using advanced technology. Its purpose is to identify unscrupulous borrowers before issuing a loan and to help "good" clients in the correct assessment of their capabilities. Accordingly, the effectiveness of the system is assessed on the basis of indicators characterizing the goals set. In particular, scoring models designed to detect fraud are evaluated using statistics on late receipts of payments and defaults.

At the moment, we have an advanced borrower assessment system that allows us to quickly respond to changes in the business. Special employees regularly (almost on a daily basis) analyze market changes, changes in customer categories, the emergence of new bank fraud schemes and adapt the scoring system accordingly.

For our system, there are no "obviously" pass-through answers, since the borrower is assessed as a whole based on all available information about him, his credit history, and the place where he received the loan. Nevertheless, it is possible to deceive the system, but for a rather short time. New fraud schemes are regularly detected and suppressed, and their perpetrators are prosecuted.

Alena Zheltova,
Head of Public Relations at Home Credit and Finance Bank:

The scoring system used by our bank is our own development and includes information about 4.2 million people. Using this system allows you to make a decision on issuing loans in the amount of up to 50 thousand rubles within a few minutes.

The automated scoring system used by our bank was developed and tested by members of the Home Credit group in Central European countries based on consumer loan payment statistics in this region. In 2003, this system was finalized taking into account the specifics of the Russian financial services market, and subsequently it was updated several times.

The main criterion for evaluating the effectiveness of the scoring system is the number of non-returns, which, of course, is taken into account.

The default rate at Home Credit remains below the bank's business model.

The scoring system is regularly updated taking into account the realities of the Russian consumer lending market and in accordance with the requirements necessary for the full-fledged activity of the bank.

If employees of some third-party firms simply help a person fill out documents for obtaining a loan, then their activities only benefit banks, as they ultimately lead to an increase in the number of customers. Another thing is that the process of obtaining a loan in our bank is not so complicated that the services of specialists are required. The administrator of the bank or an employee of the store with whom the bank cooperates helps to fill out the questionnaire correctly.

If the employees of the company tell a person what exactly should be written in order to pass the scoring, even if this information is not true, then this is already a deception of the bank and falls under the definition of “fraud”.

For reference:

credit scoring, this is a system for assessing the creditworthiness (credit risks) of an individual, based on numerical statistical methods. As a rule, it is used in consumer (store) express lending for small amounts. It is also possible to use it in the business of mobile operators, insurance companies, etc. Scoring consists in assigning points by filling out a certain questionnaire developed by credit risk assessors and underwriters. According to the results of the points scored, the system makes a decision to approve or refuse to issue a loan ( according to information from Wikipedia).

As the experience of many borrowers shows, a quick loan without refusal is sometimes not so simple and affordable options. It often happens that a loan is denied. We will highlight the most common reasons for refusing a loan, as well as provide useful recommendations for those who want to take a bank loan in cash without fear of being refused.

First of all, the main reasons for refusal are bad credit history and open delays in payments! In this case, it is extremely difficult to get a loan for a large amount.

How to increase the chances, i.e. try to bypass the scoring?

In order not to find yourself in a situation where you urgently need money, and banks one after another refuse to issue you a loan, you should remember a few important subtleties:

1. Don't ask too much at once. In this case, the probability of failure automatically increases. Start with small loans. If you take out several of these loans in turn, always paying back the money in good faith on time, you can create a good credit history for yourself, which will serve you well in the future.

At the same time, you can not ask for too small amounts of money with high incomes. If a client wants to receive, say, five thousand rubles with a monthly income of one hundred thousand, this looks at least strange and makes bank employees doubt the authenticity of the information you provided.

2. Be very careful when filling out the questionnaire. Indicate only accurate, verified and reliable data. Remember that information is always easy to verify. Lying once on your loan application can ruin your credit history for a long time.

Knowing these simple rules, you can somewhat reduce the risk of rejection. But do not forget that today banks are to some extent tightening the requirements for their potential borrowers.

As a rule, money on credit is given to solvent citizens with a high income, higher education, no negative credit history and no debts.

A negative bank decision on your loan application is a common and rather unpleasant phenomenon. Unfortunately, in most cases, it happens that the client does not even know for what reason he was refused a loan, because banks reserve the right to refuse a loan without explaining the grounds.

Watch the video, which briefly describes the main points of the bank's refusal of a loan and gives recommendations on how to avoid it ...

Common grounds for a negative decision

As a rule, the denial of a consumer cash loan requested by the bank's client is not based on any one reason, but has several grounds, which together have a negative impact on the bank's decision. Here are the most common reasons for refusal of a loan:

1. Insufficiently high level of income. Sberbank and other banks are usually very reluctant to give loans to people who have a fairly modest salary. In order for you to return the borrowed funds back, the bank must be one hundred percent sure that you are solvent enough for this. As a rule, this becomes a very common reason why many people cannot get a bank loan.

2. Negative credit history. Another very good reason that prompts bank employees to give you a refusal. The very term "negative credit history" in the policy of different banks can have its own individual interpretation. As a rule, this concept is associated with a potential client's outstanding loan debt.

In most cases, this reason becomes the determining factor that does not allow the bank to give the client a positive decision.

3. Providing inaccurate or false information when filling out the questionnaire. Remember that all the information that you enter in the application is very easy to verify. Therefore, banks today are struggling with dishonest potential borrowers who really want to take a cash loan and provide deliberately false information. Remember that it is not difficult to check all the data presented in the questionnaire.

4. The potential borrower does not have a stable job and a fixed salary. If you work unofficially or do not work at all, it will be quite difficult for you to get a cash loan. The result of an application for funds in this case is almost always a refusal.

5. Little experience. Another common reason for rejection. For those who are just starting their career and have a total work experience of less than one year, it will also be problematic to take a cash loan.

6. Age of the potential borrower. As a rule, Sberbank and other banks prefer to issue loans to people who fall into the age category from 25 to 55 years. Many banks are not ready to see people younger or older than this age among their customers.

This is not a complete range of all the reasons that can cause a failure. In total, experts count several dozen such grounds. If you have one such negative factor, of course, you have a chance to get a loan without any problems, but if your credit history combines several of these indicators, most likely you will be refused.