Credit score is a number calculated to represent the likelihood that a person will pay off their debts. It is calculated in order to determine an individual's financial credit worthiness by using a statistical model. A credit score is based on credit report information, typically from reporting agencies, or historical data concerning credit rating. Lenders, such as banks and credit card companies, use manual credit scoring methods to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt. Lenders use credit evaluations to determine who qualifies for a loan, assign an interest rate, assign credit limits and manage accounts that are already open.

A scoring card is a combination of attributes, their levels, points (called credit score) and assessment involved with customer membership in an appropriate level (the 'BeingGood' parameter). A scoring card can be extended by custom points (additional extra points).

Figure 40.1. A typical scoring card