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

                             2011 Census

                             Bank Lending for Mortgages and Loans

                             Land Registry Property Price

                             Register of Social Housing

                             County Court Judgements

                             Council Tax

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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