United Kingdom
See also: Credit scorecardsThe most popular statistical technique used is logistic regression to predict a binary outcome, such as bad debt or no bad debt. Some banks also build regression models that predict the amount of bad debt a customer may incur. Typically, this is much harder to predict, and most banks focus only on the binary outcome.
Credit scoring is only closely regulated by the Financial Services Authority when used for the purposes of the Advanced approach to Capital Adequacy under Basel II regulations.
It is very difficult for a consumer to know in advance whether they have a high enough credit score to be accepted for credit with a particular lender. This is due to the complexity and structure of credit scoring, which differs from one lender to another.
Also, lenders do not have to reveal their credit score head, nor do they have to reveal the minimum credit score required for the applicant to be accepted. Simply due to this lack of information to the consumer, it is impossible for him or her to know in advance if they will pass a lender's credit scoring requirements.
If the applicant is declined for credit, the lender is also not obliged to reveal the exact reason why. However Industry Associations, such as the Finance and Leasing Association, oblige their members to provide a high level reason. Credit bureau data sharing agreements also require that an applicant declined due to credit bureau data is told that this is the reason and the address of the credit bureau must be provided.
Read more about this topic: Credit Score
Famous quotes containing the words united and/or kingdom:
“... when we shall have our amendment to the Constitution of the United States, everyone will think it was always so, just exactly as many young people believe that all the privileges, all the freedom, all the enjoyments which woman now possesses were always hers. They have no idea of how every single inch of ground that she stands upon to-day has been gained by the hard work of some little handful of women of the past.”
—Susan B. Anthony (1820–1906)
“Was I not born in this Realm? Were my parents born in any foreign country?... Is not my Kingdom here? Whom have I oppressed? Whom have I enriched to other’s harm? What turmoil have I made to this Commonwealth that I should be suspected to have no regard of the same?”
—Elizabeth I (1533–1603)