Winter 1998

Credit Scoring and Automated Underwriting?

First seen in the auto loan and credit industries--and most recently in the area of home financing--automation and credit scoring now are poised to sweep through small-business lending.

Credit Scoring: a Tool for Small-Business Lending

Credit scoring is providing an opportunity for banks and other lenders to more efficiently evaluate loan risks and lower the costs of small-business lending.

How Credit Scores Are Determined

To compute a credit score, a model is used containing a list of questions, with a certain number of points given for each answer. Only information proven to be predictive of future credit performance is used in a model.

Communities Unabridged:

How Mortgage Lenders Are Using Automated Credit Scoring

Credit scoring is one of several automated devices that mortgage lenders are using to assist in verifying or qualifying credit information about a customer.

Correcting Errors on a Credit Report

A listing of information and contacts if errors are found on a credit report.

Consumer Credit Counseling Services

The Consumer Credit Counseling Service (CCCS) is available for individuals or families who need help with solving debt problems or would like to improve their credit history.

Please send questions or comments to Glenda.J.Wilson@stls.frb.org

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