Which of the following is an advantage of a credit scoring model?

Question

Quizplus · Accepted Answer

Credit scoring models can process a large number of credit applications quickly and efficiently, allowing lenders to make decisions in a timely manner. This results in faster processing times and ultimately benefits both the lender and the applicant. While credit scoring models are not immune to errors, they are generally regarded as being more objective and consistent than human judgement. However, they are not totally immune to charges of discrimination, as they may be influenced by factors such as credit history, income, and other socio-demographic variables that may be correlated with race, ethnicity, or other protected characteristics.

Which of the Following Is an Advantage of a Credit