Which of the following is true regarding credit scoring systems?
A) Lower scores are better than higher scores.
B) Scoring systems are based on statistical studies.
C) Credit unions calculate and sell credit scores to lenders.
D) Females receive higher score than males.
E) All of the above

Question

Quizplus · Accepted Answer

Credit scoring systems are based on statistical studies that analyze data such as payment history, credit balances, and length of credit history to predict creditworthiness. Lower scores indicate a higher credit risk, and credit unions do not calculate or sell credit scores to lenders. There is no evidence to support the statement that females receive higher scores than males.

Which of the Following Is True Regarding Credit Scoring Systems