Scoring. Automated scoring system for assessing the creditworthiness of borrowers. Analytical Estimation of Model Weights

12.01.2022

We all know very well that banks are not charitable organizations, and before issuing a loan, they carefully assess the borrower's creditworthiness, his ability and desire to repay the debt on time. For this purpose, various assessment methods have been developed and used, which we will discuss in our review.

So, when you apply to a bank representative office in order to obtain a loan, the first meeting begins with an interview and a questionnaire. The purpose of this interview is to collect as much information as possible about a potential borrower, namely to find out the purpose of lending, age, marital status, place of residence, place of work, length of service, size wages and other social and demographic characteristics. Further, the collected information can be supplemented with data received from credit bureaus, the legal department, security services, etc., after which it is processed. To analyze the information received, banks use expert and scoring models, which we will discuss below.

Expert and scoring models - main features

An expert model for assessing the borrower's creditworthiness or individual underwriting. The main feature of this model is that the received information is analyzed by loan officer(or a collegial body - the bank's credit committee headed by the chairman of this committee), it also makes a decision on issuing a loan and forms the final terms of the loan agreement. As a rule, several bank services are involved in the expert assessment, which collect, analyze, and present information to the credit committee. A credit manager usually analyzes solvency, in parallel, a credit history request is made to the BCI. The legal department analyzes the objects of pledge, personal documents of the borrower, studies the risks and title documents. The work of the bank's security service is to check the legality of the client's employment and the presence of a criminal record. The involved subdivisions of the bank give their opinions, after which the case is submitted for consideration by the credit committee of the bank.

Scoring model for assessing creditworthiness or point method. The peculiarity of this model is that all information received from the borrower is entered into special program. For each answer, in a simplified form, the system calculates a certain score and, as a result, based on the total scores, makes the final decision whether to issue a loan or not.

As a rule, an expert valuation technique is used in the case of mortgage lending, when it comes to large amounts and requires a thorough, reliable verification of the client. Scoring systems are used in consumer express lending, when the decisive role is played by the speed of decision-making on the provision of Money. Also, banks can use these models in parallel - the scoring system gives a preliminary assessment of the client, which is then considered by experts.

Since recently the retail segment of consumer lending has become widespread (cash loans, lending in outlets etc.) and continues to develop actively, we are increasingly faced with scoring assessment systems. Therefore, we will talk about them in more detail below.

Credit scoring system - general principle of operation

Scoring began to be actively used after D. Durand in 1941 identified the main groups of factors that have the greatest impact on the degree of credit risk, and the coefficients of influence of each of them. This was the first, and most primitive, scoring model. So, women immediately received 0.4 points, men - nothing. For each year of life, people older than 20 years were awarded 0.1 points. A person with a profession with a low risk received immediately 0.55 points, and if he also had a bank deposit, an additional 0.45 points. 0.19 points were due for an insurance policy, 0.35 points for owning real estate. A person who managed to step over the threshold of 1.25 points was considered creditworthy.

Currently, the scoring models used by banks have become more advanced and operate with a large set of characteristics and evaluation criteria. In the United States, a scoring system developed by FICO (NYSE: FICO) is used to assess risks in consumer lending. On the Russian market presented, both foreign scoring systems (the same FICO Score), and developments of domestic companies, incl. and banks. Which of them is better is a difficult question and the problem of choice lies in the fact that the system must take into account and adapt to the peculiarities of banking legislation, the mentality of citizens, traditions and other factors. local market banking services. But since the issue of choosing a credit scoring system is a headache for banks and us, ordinary borrowers, it does not concern, we will consider general principles the operation of these systems.

So, all the information received by the credit manager from the client is checked and entered into the scoring system in the form of answers to questions. Questions are divided into blocks, the composition of which is individual for each bank. Typically this is a block. general information about the client (gender, age, marital status, etc.), employment of the borrower, assets and liabilities of the client (filled in on the basis of the certificates provided and the credit report received from the credit bureau), the presence of property in the property, collateral, surety and others characteristics. For each answer, the system accrues or subtracts a certain number of points. After that, the points scored are summed up for each of the blocks and for the client as a whole, and the system issues a decision. Please note that there is a possibility of not passing through one of the blocks, even if the total score falls within the required range.

Some banks divide customers into categories depending on the amount of points scored. For example, customers of the 1st category are recommended to lend on best conditions, for the 2nd category - to reduce the amount or term of lending, i.e. change the conditions in a more favorable direction for the bank, etc.

Despite all the differences and variety of credit scoring options, there are basic recommendations for borrowers that will help increase your chances of obtaining a loan. We will talk about them further.

How to answer questions from a credit manager

Whatever scoring model the bank uses, there are characteristics for which borrowers are always awarded additional points. These include:

Availability of accounts, tangible assets, real estate property. Do not skip the columns of the questionnaire containing questions about your property and savings. Do not try to hide from the bank the fact of having an apartment or a deposit: if financiers need to foreclose on these objects, they will independently establish all the necessary facts. At the stage of obtaining a loan, this is a great chance to score a few extra points.
Preference is given to people who are married (including civil marriages). Keep this in mind when filling out the application.
Each child is considered by the bank as a dependent. If you are a parent, but do not appear on the birth certificate, it is better not to indicate this fact.
The purpose of the loan is also important. Banks are more willing to lend for education, repairs, etc., but not for leisure and personal purposes.
If you receive additional income and can confirm this (for example, you have a deposit or an apartment that you rent), be sure to indicate this on the application form and provide appropriate confirmation.
When paying for the education of children or your own, do not rush to write about it (this fact is very difficult to establish, but you have a chance to lose a few points).
An extra point can be obtained if you have life and property insurance in your property.

Thus, the thoughtful completion of the questionnaire is in itself a chance to increase the likelihood of obtaining a loan. If the data is documented, this is another plus for you.

After analyzing the main scoring models and the situation on the Russian market, we can conclude that the credit scoring system allows the bank to more accurately assess the risks for each borrower and minimize the likelihood of fraud, both on the part of customers and employees themselves. The importance of assessing potential borrowers is also confirmed by the fact that banks are beginning to actively implement Risk-Based Pricing, a new approach to shaping lending conditions when interest rate is set individually, depending on the reliability of the client.

In this article, the portal Creditoff (Credytoff) will answer the questions: “scoring, what is it? and how the scoring assessment of the creditworthiness of an individual is carried out”.

Getting the maximum profit for banks is directly related to quality loan applications. The bank is no less interested in the return of the loan issued than the borrower. Therefore, bankers conduct a rigorous check of borrowers and analyze credit risks.

Scoring assessment of the creditworthiness of an individual

Credit risk is a possible financial loss due to default by the borrower of obligations under loan agreement. This may relate to late payments (arrears) or a complete refusal to pay the loan.

In order to minimize credit risks, bankers use a scoring assessment of potential customers.

Today, the scoring assessment of the creditworthiness of an individual is widely used to assess the reliability of the borrower. Scoring gives an understanding, relying on the credit histories of existing or former clients, how great is the chance that a potential borrower will return the money on the date set by the agreement.

Scoring, what is it?

Scoring, what is it? (English scoring - "scoring")

This is a system of certain characteristics of a potential borrower. Automated scoring provides a real objective assessment of financial risks, in contrast to the fact that credit inspectors would directly carry out the verification (human factor).

As a result of the check, a certain indicator (score) is obtained, which indicates the degree of risk associated with a particular client. This indicator compares with a certain threshold value, which is essentially a break-even line (hello advanced readers?). If the indicator is above the threshold, then a decision is made on the possible approval of the application. If below the threshold, then alas, the client will be denied.

What data is considered when scoring

Scoring assessment of the creditworthiness of an individual is quite complicated. Approval or rejection of a client depends on many indicators.

Passport details of the potential borrower, where he is registered and where he actually lives, contact phone numbers. Based on this information, the primary identification of the bank's client is carried out. At this stage, clients with expired passports, incorrectly or falsely provided data, and fake documents are screened out. Any mistake in the provided data threatens with instant refusal.
At the second stage, age, gender, marital status, length of service, number of dependents (minor children are a negative factor for scoring), length of service at the last place of work are assessed.
The program then evaluates the client's solvency. Assessing the financial condition, the main role is played by the monthly confirmed income. Those. "White" wages indicated in the certificate 2-NDFL. If the income is confirmed by a Bank Statement, then the final scoring score is lowered. The loan may be approved, but the amount will be less.
After the previous steps have been completed, the program proceeds to check. As a rule, the data of several BCIs (credit bureaus) are considered at once. Not only delays are checked, but also the financial burden on, if any. In addition, the BKI records all requests to the bank. If there are many refusals, this negatively affects the possibility of approval. So having received a refusal once, we advise you to check your credit history. There is a possibility that the BCI data may be erroneous.

Scoring assessment of the creditworthiness of an individual payroll client of the bank

For holders salary cards a separate check. Card transactions are evaluated. Scoring checks the terms of receipts and withdrawals, as well as the average account balance. It should be noted that the lowest score is received by those clients who, immediately after receiving their salary, withdraw it in full in cash.

How the decision is made

Scoring assessment of the creditworthiness of an individual. How the decision is made

After analyzing the received data, scoring issues a decision. A potential borrower receives a color "marking": white, gray, black.

White color - the borrower can count on a loan
Black color - rejection
Gray color means that there is not enough data to make a decision, an additional assessment of the underwriter is required. The loan inspector will study the questionnaire and the data provided in more detail. He may ask for additional documents. After additional verification, the underwriter will give an opinion on the possibility of approval, as well as on the maximum amount and maturity of the loan.

"Scoring, what is it?" - for first-time loan recipients

Despite all the advantages of scoring, today banks are editing their client verification models. Many banks practice the so-called "adapted scoring assessment of the creditworthiness of an individual." Additional verification parameters are introduced, for example, the period of operation of the company in which the potential borrower works, the scope of this company, financial results activities, etc. In general, supplementing the answer to the question “Scoring, what is it?”, It should be noted that scoring checks in many large banks are very similar. Therefore, before applying, check your own, this will save you time and nerves.

Scoring (from the English score, score) is a way to assess creditworthiness. As a borrower, you are interested in scoring for self-diagnosis: to find out the reasons for a loan refusal or to assess the chances of a future loan. In the article we will tell you how to find out your scoring score and how to increase it.

How scoring works

To assess creditworthiness, scoring needs data. The data can come from different sources: credit history, borrower profiles, social networks, etc. Scoring processes the data and assigns a score. The higher the score, the higher the chances of getting a loan on favorable terms.

The scoring score is a variable value. It changes depending on the actions of the borrower. For example, a borrower took out a loan - the credit load increased and the scoring score decreased. Late payment - the score fell even lower. If the borrower repays the loan accurately without delay, the score will increase.

Types of scoring

Banks use application, behavioral and fraudulent scoring.

Application scoring is divided into socio-demographic and credit. The first analyzes the borrower's profile: age and gender, work, length of service, income. The second analyzes the credit history: how many loans the borrower took, how he paid, how much he pays now, etc.

Behavioral scoring predicts how the borrower will repay the loan: evenly, ahead of schedule or with delays. Behavioral scoring can, for example, payroll bank- he knows how the borrower uses the card, how much money he spends and on what.

Fraudulent scoring fights intentional non-payment of loans. This scoring analyzes the bases of the Ministry of Internal Affairs, the FSSP, the internal security service, as well as suspicious data in the credit history, for example, frequent changes of addresses and telephone numbers.

As a borrower, you can evaluate yourself by two types of scoring: credit and socio-demographic.

Credit scoring

Credit scoring is used to evaluate borrowers who have already taken loans. The scoring score is calculated based on the analysis of credit history.

Example of a credit scoring report

Sociodemographic scoring

Sociodemographic scoring is designed for borrowers with an empty or no credit history. It analyzes age, gender, marital status, dependents, education, profession, seniority, income and region of residence.

Sotsdem scoring compares the data of the verified borrower with previous clients of the bank in order to assess the reliability. For example, according to the bank's statistics, people over 30 make loan payments more consistently than young people. Therefore, borrowers from 30 years old, all other things being equal, receive a higher scoring score.

Sample Sociodemographic Scoring Report

Breakdown of scoring points

Credit	Sociodemogr.	Decryption
690-850	1000-1200	Maximum result. You belong to the category of reliable borrowers. So banks willingly approve loans on better terms.
650-690	750-1000	Good result. High probability of obtaining a loan on standard terms.
600-650	500-750	Acceptable result. The bank will require additional certificates to confirm solvency, for example, 2-NDFL.
500-600	250-500	Weak result. With such a score, you are unlikely to get a loan in big banks. Contact small regional banks or credit cooperatives.
300-500	0-250	Worst result. Banks are unlikely to approve a loan. Contact the MFI or CPC. Offer collateral to the lender.

How to increase your score

If you have a low credit score, the only option to increase it is to improve your credit history. For this:

and check if everything in it is true. Sometimes credit organizations data is transmitted very late, or not transmitted at all. For example, you repaid a loan, but it is listed as open in your credit history. This lowers the score.
Read the article
Close late payments and non-essential loans: credit cards, microloans, loans for equipment. The fewer open loans, the higher the score.
If over the past two years you have had loans with delinquency, you need to restore the reputation of a reliable borrower. To do this, take new loans and pay them carefully. They do not give a loan without collateral - provide collateral, find a co-borrower. Use the service. In six months or a year, the scoring score will increase.

To increase your socio-demographic score, study the "factors" in the report and try to correct them. For example, if you are an individual entrepreneur, get a job and work for six months for hire. Find a co-borrower, go abroad, find a source of additional income.

Remember

Scoring helps borrowers evaluate their own creditworthiness and understand the reasons for bank failures.

Scorings are different: some analyze a credit history, others a questionnaire, others look for signs of fraud. Two types of scoring are available to you - and socio-demographic. The first is relevant for borrowers with lending experience, the second is for those who have never taken loans.

The score varies depending on credit behavior. The score can be reduced or increased.

The concept of scoring customer creditworthiness

Definition 1

Scoring is a statistical or mathematical model that uses data from the credit histories of bank customers, and ultimately it is possible to calculate the probability that the next potential borrower will return the funds received on time.

This borrower assessment methodology is a weighted sum of a certain set of characteristics in a very simplified form. This is necessary for the formation of a summary indicator. This indicator is further compared with the so-called break-even line.

Such an assessment of the solvency of the borrower is needed to determine integral indicator everyone potential client, and the result obtained must be compared with the above line (accordingly, only those borrowers who have this indicator above the break-even line will be able to receive a loan).

Usually, in the national economy, banks use adapted models of scoring assessments of the creditworthiness of an individual, which are adapted to Russian conditions.

First, a preliminary assessment of the possibility of obtaining a loan is given, based on the data of the questionnaires-applications of borrowers. Based on the results of the completed application forms, protocols for evaluating the possibility of granting loans are signed.

Example 1

If the score is less than 30, the protocols record a refusal to provide a loan, but if more than 30 points were scored, then at the next stage the risk is assessed more carefully, taking into account additional surveys.

Advantages and disadvantages of credit scoring

Scoring methods and models allow:

reduce the risk of loan default;
make decisions on issuing a loan quickly and impartially;
allow you to effectively manage your loan portfolio;
no need to spend a lot of time training employees of the credit department;
it is possible to conduct an express analysis of the loan application in the presence of the client.

The limitations of the scoring methodology include the fact that it can only be applied to information about those clients to whom the bank has already issued a loan. Also, bank employees have to periodically check the quality of the methodology and analysis and develop a new scoring methodology.

Further improvement of the scoring methodology will expand and change the list of assessed characteristics of loans.

In mortgage lending to citizens, the underwriting of the borrower is used, the most important thing is the assessment of the timely installment of loan payments. The ratio of the size of the monthly obligations of the borrower to the total family income for the same period, etc. is estimated.

The process of conducting a scoring assessment of the creditworthiness of borrowers

Typically, to analyze the creditworthiness of a potential borrower, the following are requested:

a copy of the documents proving the identity of the borrower;
confirmation of the client's income: certificate in the form 2-NDFL, copy tax return in the form 3-NDFL;
Additionally, they may also request documents of ownership of property and others that can confirm the solvency and business reputation of the client.

The bank's specialists analyze the solvency of an individual borrower based on the data on the average monthly income and the amount of deductions for the previous six months, as well as information based on the questionnaire. The result is calculated as the average monthly income minus all mandatory payments and is adjusted by a correction factor that varies depending on the amount of income (from 0.3 to 0.6). The greater the income, the greater the adjustment.

Remark 1

At the moment, the most universal method for assessing creditworthiness is the valuation method financial position client.

To mitigate and control risks, banks should conduct quarterly assessments financial condition borrower.

As an improvement in the assessment of the creditworthiness of individuals, it is proposed to use a scoring system when determining the volume of loans issued.

Credit scores are designed to measure the risk of default by a potential borrower, taking into account various factors of credit history. Formulas for calculating credit scores are usually Western banks are not disclosed, but, in general, the following components are used, which can be considered as applicable experience:

35% is credit history- the presence or absence of compromising information. Bankruptcy, pledges, judgments, agreements, confiscations, foreclosure of property, late payments can be the reason for refusal to issue a loan.
30% Leverage – This category looks at a number of specific dimensions of leverage, including the number of overdraft accounts, existing debt obligations, installment purchases.
15% share falls on the term of the credit history - the average period of lending and the term of the original loan.
10% is an assessment of the types of credit used (installment plan, overdrafts, consumer loans, mortgages), shows the history of managing various types of loans.
A 10% share of the score falls on the number of loan requests - the borrower's rating is reduced if requests have been made in large numbers recently (14-45 days).

Scoring models should be based on up-to-date data and quickly reconfigured when a bank's credit policy changes.

The credit bureau plays an important role in the work of the scoring model. It is necessary to study the credit history of the potential borrower and the spouse of the applicant. All types of income and expenses of the borrower must be documented.

Example 2

Loans should not be issued to citizens who have payments under executive documents 50% or more of net income. Also, the guarantee of an individual whose salary deductions equal to or exceed 50 percent of net income should not be accepted as collateral for loans.

Figure 1 presents information developed foreign banks to obtain information about the purpose of the loan, the personal characteristics of the borrower and the credit history of the borrower.

Figure 1. Variables used in scoring models for assessing the creditworthiness of borrowers. Author24 - online exchange of student papers

When assessing the credit risks of potential borrowers, a number of factors are taken into account: age, marital status and education, the number of his/her dependents, the client's place of residence, profession, length of service, current work experience. As well as the following financial information: client's regular income and liabilities; credit history, which includes facts such as high-quality loan repayment; previous positive cooperation with the bank, if the client is already a client of the bank.

Almost everyone who has ever received a refusal to apply for a loan heard the following phrase from the manager: “The decision was made by the scoring system. Your credit scores as a borrower are not up to par.” What is this norm, what is scoring and how to pass the “credit detector” with “excellent”? Let's try to figure it out.

General information

So, what is a peculiar system for assessing the reliability of a borrower, built on a number of parameters. When a person applies for a loan, the first thing they are asked to do is fill out a form. Questions of the questionnaire were invented for a reason. This is the scoring model for evaluating a potential borrower. Depending on the answer, each item is assigned a certain number of points. The more of them, the higher the probability of obtaining a positive decision on the issuance of funds.

There is one nuance here. If you have a negative credit history, then further answers to questions and the number of points scored most often no longer matter. This fact alone is enough for a refusal.

Goals and objectives of scoring in modern banks

Any scoring model used in the lending system is introduced in order to obtain the following results:

an increase in the loan portfolio due to a decrease in the share of unjustified refusals on loans;
speeding up the procedure for assessing a potential borrower;
decrease in the level of non-repayment of credit funds;
improving the quality and accuracy of the borrower's assessment;
centralized accumulation of customer data;
decrease in the provision for the amount of probable losses on loans;
assessment of the dynamics of changes in the individual credit account and the entire portfolio of loans as a whole.

Credit scoring: how does it work?

To achieve the set goals, banks use a scoring model for assessing creditworthiness. It assumes minimal influence on the result of the manager or collusion of bank employees.

Almost all information entered in the questionnaire must be confirmed by the presence of documents. The bank manager in this case plays a purely technical role - he enters data into the program. When all the points of the questionnaire are completed, the computer program calculates and gives the result - the number of points you have scored. Further, the situation may develop in different ways.

If you scored too few points, you can be sure that the loan will be denied.

Was the score much higher than average? If the loan amount is small, the decision can be made right on the spot. If you are applying for a rather impressive amount, you will be informed that you have passed the first stage of verification, and the application has been submitted for consideration to the bank's security service.

Does the score float in the middle? The manager, most likely, will require a guarantor to be brought in or appoint a series of additional checks.

Types of scoring

In general, the scoring model consists of seven types of assessment, four of which are related to lending, and three to marketing. The following types of scoring are typical for credit practice:

By requests (Application-scoring). This model is most often used to assess the reliability and solvency of customers. It is built, as already mentioned, on evaluating the questionnaire and assigning each answer an appropriate number of points.
From fraud (Fraud-scoring). It helps to identify potential scammers who managed to pass the first stage of testing. The principles, methods and methods of testing for fraud are a commercial secret of each bank.
Prediction of behavior (Behavioral-scoring). Here, an analysis of the borrower's behavior in relation to the loan is carried out, the likelihood of a change in solvency. Based on the results of the assessment, adjustments are made maximum amount loan.
Work on returns (Collection-scoring). This model is applied to problem loans, at the stage of repayment of outstanding debts. The program helps to form an action plan for repaying a loan: from a warning to transferring the case to court or a collection company.

The other three look like this:

Pre-sale assessment (Pre-Sale) - reveals the potential needs of the borrower, allows you to offer an additional product.
Response (Response) - evaluates the likelihood of the client's agreement with the proposed lending programs.
Attrition score - an assessment of the likelihood that the client will end their relationship with the bank at this stage or in the future.

Disadvantages of the scoring system

The assessment of the creditworthiness of individuals has its drawbacks. The main thing is that the system is not flexible enough and does not adapt well to real parameters. For example, the scoring model adopted in the United States will give a high score to a person who has changed a large number of jobs. Such a person is considered a wonderful specialist, very in demand in the labor market. With us, this fact will play a cruel joke with the borrower. The highest number of points will be received by a person who has only one record in the labor. If the borrower often changes employer, then he is considered unreliable, quarrelsome and a poor specialist. His rating in the eyes of the bank is rapidly falling, because the next dismissal may not be followed new job, which means that delays in payments will begin.

In order to adapt the system to our living conditions as much as possible, assessment questionnaires should be developed by specialists of the highest category and qualifications. But any results obtained in this way will still be dependent on the opinion and influence of a person. So a completely impartial assessment is still impossible.

So any scoring system has at least two drawbacks:

the high cost of adaptation to modern realities;
the influence of the subjective opinion of a specialist on the choice of a client assessment model.

In addition, the grading system itself is also imperfect. The fact is that when scoring, only the formal state of affairs is taken into account. The system is not capable of correctly assessing reality. For example, if a client has a room in a communal apartment on the Arbat, the system will give him a high score. After all, there is a Moscow residence permit and housing in the center. A chic mansion with an area of several thousand square meters, located in a small village on the Black Sea, the system will designate as "housing in the village" and lower the score for the lack of a Moscow residence permit.

What data is involved in building the model

In cases where an assessment of the creditworthiness of individuals is carried out, a bank employee must rely on a number of criteria. All of them can be divided into three large groups, each of which includes many indicators.

marital status;
age;
presence of children, their age and number.

Financial:

the amount of basic monthly income;
Place of work, position;
the number of entries in the work book;
period of employment in the last firm;
the presence of encumbrances (debts, outstanding loans, alimony and other payments);
own housing, car, bank accounts and deposits.

Additional:

the existence of additional sources of income that are not documented;
the possibility of providing a guarantor;
other information.

The scoring model for assessing the creditworthiness of a legal entity is built a little differently. Here, the key parameters are considered But since they are calculated based on financial statements campaign-applicant, in which case they can be adjusted. Given this possibility, the objectivity of the assessment is greatly reduced. Therefore, to evaluate legal entities scoring with dynamic indicators is applied.

The first step is based on the collection of information that cannot be calculated by material indicators. These include market position, expert opinion on financial and economic sustainability.

The next step is to define financial indicators. Here we study liquidity ratios, security own funds, objective indicators of financial stability, profitability, turnover of funds and so on.

Based on the results of two independent assessments, the bank makes a decision on issuing a loan.

Who can get a high score

If speak about individuals, then the assessment of the borrower is also carried out according to many indicators. There are many factors that can positively affect the rating:

high salary;
own movable and immovable property;
a long period of residence in a particular region;
availability of deposits;
documentary evidence of income;
availability of a landline phone at home and at work;
confirmation of official employment, especially in state-owned enterprises and in the public sector;
Availability open accounts(deposit, pension, settlement) in the creditor bank;
the presence of a significant amount of an advance payment when obtaining a mortgage or car loan;
the possibility of providing recommendations, a guarantor or a co-borrower;
excellent credit history.

How to cheat the system and can it be done?

It is believed that since the assessment is carried out by a soulless machine, then it can be deceived by finding out in advance the “correct” answers to questions. In fact, this is far from the case.

The scoring model for client assessment is built in such a way that all answers to questions can be verified using the relevant documents. In addition, banks often unite in entire networks and dump the results of their checks into one common system. So if fraud is revealed during the additional verification process, a fat cross will be put on your reputation as a borrower. Nowhere and never you more credit don't get.

You can try to embellish reality only when the data is entered into the system only from the words of the client. However, it is quite difficult to find such a bank, and the interest there is so extortionate that you yourself are unlikely to want to apply for a loan there.

Scoring and credit history

Considering that at least half of the inhabitants of our country have already had the experience of applying for a loan, such an indicator of assessing a borrower as a credit history comes to the fore. Since the BKI has for some time been supplemented with data on borrowers of microfinance organizations and other similar institutions, scoring models have appeared on the market, adjusted for the presence and condition of a credit history.

These models evaluate borrowers by the probability of non-payment of funds, the occurrence of delinquencies, the number of loans previously repaid, and other parameters.

In addition, banks are offered the service of automatic information about customers. By connecting this service, the bank will know: