Credit scoring systems can be used to:
A) reduce the effective cost of trade.
B) determine the cost of goods sold.
C) evaluate Dun and Bradstreet reports.
D) evaluate credit risk based on the borrower's characteristics.

Question

Quizplus · Accepted Answer

Credit scoring systems are used to evaluate the credit risk based on the borrower's characteristics, which can include factors such as credit history, income, and employment status. This information helps lenders determine the likelihood that a borrower will pay back a loan and can inform decisions about interest rates, loan amounts, and other terms of the loan.

Credit Scoring Systems Can Be Used To