Concept in Definition ABC
Miscellanea / / July 04, 2021
By Florencia Ucha, in Mar. 2011
The Scoring it's a system of evaluation automatic requests for credit operations, such as loans to the consumption, mortgages or credit card grants.
Therefore, scoring is the fastest and safest automatic evaluation system that will be used when having to decide, for example, the granting or not of a loan.
Based on all the information that is available in the database of the grantor regarding the candidate in question, the scoring will allow the immediate and almost seamless prediction of the probability delinquency. Likewise, it is of great help in the evaluation, behavior and collection process, since it is able to analyze in a very short time and in a homogeneous way a significant volume of information.
Among the various and fundamental advantages that it presents are the following: rapid evaluation in the granting of credit (the analysis of both internal and external information of all requests can take 30 minutes), improves the efficiency(optimization of
human Resources because by score it allows to determine the evaluator who will be in charge of the analysis of the credit application), simplifies cumbersome documentation procedure (for some credits it will only be necessary with the verification of personal address or labor, meanwhile, for others it may be necessary to request additional information that seeks further documentation), proposes a consistent and objective evaluation (it evaluates similar information always in the same way, thus avoiding different appraisals as a consequence of using subjective criteria) and represents a significant saving in evaluation costs (There is a concrete and important saving of money in this field). Topics in Scoring