The process of mathematically evaluating your creditworthiness to obtain credit is called
A)credit scoring.
B)credit evaluation.
C)credit references.
D)credit history.
E)credit statistics.

Question

Quizplus · Accepted Answer

Credit scoring is the process of using statistical models to assess an individual's creditworthiness based on their credit report, payment history, employment history, and other factors. This information is used to assign a credit score, which is a numerical representation of an individual's credit risk. Lenders use credit scores to determine whether an individual qualifies for credit and what interest rates they should receive.

The Process of Mathematically Evaluating Your Creditworthiness to Obtain Credit