The use of credit scoring prior to authorizing access or granting credit is commonplace. A credit score is a means of identifying the credit worthiness of an individual. Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt. They use credit scores to determine who qualifies for a loan, at what interest rate and what credit limits. Lenders also use credit scores to determine which customers are likely to bring in the most revenue. Credit scoring is not limited to banks. Organizations, such as retailers, mobile phone companies, insurance companies, landlords, and government departments also use credit scoring
The following public databases
Bank Lending for Mortgages and Loans
Land Registry Property Price
Register of Social Housing
County Court Judgements
have been used in combination to derive the average financial risk in a postcode. This can then be used to provide a very effective and simple credit screening check.
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