Scoring - Credit scoring is ...

Perhaps today there is no such person who at least once in his life did not take credit.Sometimes the decision to grant a loan the bank's employees can endure 15-20 minutes after your treatment.How do they do it, how can such a short time to evaluate the borrower's dignity?They do not do it - the decision takes an impartial computer program - a system of scoring.It was she who, based on the entered data, evaluates the level of customer loyalty.

What a strange word

It is not too clear the name comes from the English word score, which means "account".Scoring - a computer program, which is a kind of form that characterizes the borrower.Before the decision to grant the loan officer of the bank will ask you to answer some questions, and the answers will bring in the computer, then the program will assess the results of assigning each point a certain number of points.As a result of adding up all the assessments will a general indicator, defined as scoring assessment.The higher the score, the greater the likelihood of a positive decision on granting a loan.The most commonly used are not alone, several types of scoring that assess customer in different directions, or use complex multi-level system.

Forms assessment

most important and most common of these is Application-scoring, a method of testing, assessing the solvency of the client.If this kind of assessment you received an insufficient number of points, you get a loan will be very difficult.Alternatively, you can offer other credit terms - a higher interest rate or a smaller amount of the loan.

next stage of assessment - determining the propensity of the potential borrower fraud.It evaluates the system Fraud-scoring .The criteria used for the calculation of this parameter are trade secrets of each bank.

Behavioral-scoring - a type of test that allows to predict the solvency of the client in the future.Also, the system analysis reveals some "behavioral" factors: the client to dispose of the loan, will make payments accurately and on time, choose a limit on your credit card immediately and will use the money parts and more.

There is one more, the most unpleasant kind of test, - Collection-scoring borrower, which is very important for the development of measures for dealing with customers in arrears.It is needed to adequately assess the risk of non-repayment of the loan and timely application of preventive measures impact.

it possible to "cheat"?

Because credit scoring exercise machine, it may seem that easy to cheat the system - just to give the "right" in terms of bank responses.However, this is not the case, such an attempt can succeed only when the program is designed so that check some information about you just do not get.If the scoring requires making only information confirmed by documents, it is almost impossible to cheat the system.To verify compliance with the data in the application to the real situation for the employees of the security will not be difficult, because the vast majority of them are former employees of the Interior Ministry, FSB and other similar agencies and willing to use the "old bonds".In addition, sometimes it is enough just to make a call at work or neighbors prospective client.

So try to cheat the program is still not worth it, because it was originally incorporated all known circuits and signs of fraud and if such an attempt is detected, the loan with the bank you will not be ever.

So, let's consider what the advantages of the potential borrower must possess if he wants to take the credit without any problems.

Personal data - lucky enough

1. Paul - it is believed that women are more responsible approach to meeting their financial obligations.
2. Age - then excessive youth or maturity can play with you a malicious joke.The preferred age is 25-45 years.Customers falling within this range may be eligible for additional points under this item.
3. Education - if you have a college degree, the bank will trust you more.These clients are considered more successful, responsible and stable financial indicators.
4. Family Ties - single people are not a priority, so if you can "boast" even a civil marriage, get an extra point.
5. Dependents - of course, the presence of children can not become an obstacle for the loan, however, than their larger, the lower score on the item you will receive.

financial sector - what the profession preferred

In this part of the questionnaire program will assess your progress in the labor field - and the total length of service, the prestige of the profession, the level of wages in recent years, the availability of additional sources of income and more.An ideal option in this case is the presence of only one entry in the workbook - the more often you change jobs, the less were detained in each enterprise, the less points you will pay system.

Oddly enough, but the banks do not like company directors, financial managers, as well as citizens, ensuring their employment on their own (notaries, lawyers, private investigators, private entrepreneurs, and so on. D.), As their income is notfixed and depends on the trends of the market.Preference is given to clients, working as employees - civil servants, professionals, workers and middle managers - their income is considered to be more stable.

Balance solvency

also carried out scoring assessment of relation of expenditure and income, the availability of outstanding loans taken earlier.So do not artificially to inflate their income, especially if the loan amount that you want to get very small.Agree rather suspicious looking man who claims the monthly income of 100 thousand. Rubles, which is applying for registration of a loan of 10-15 thousand.

What else wants to know the scoring program

course, a list of questions, evaluated the system in different banks may be quite different, but for sure in each of them you will be asked for additional sources of collateral.Employees of the bank will be wondering whether you have additional sources of funding, whether you are the owner of the garden, garage, land, car (if yes, what exactly).Also, the bank is required to ask about why you need the money, did you for a loan before, how do you properly fulfilled their obligations to the previously issued you a loan.For each of these criteria also earn points.

screening criteria

1. face control .Although the scoring - is an automatic computer program, but the data it makes all the same person, so that even in this case, completely eliminate the "human factor" will not succeed.Therefore, going for a job interview, try to dress more solid.
2. purpose of lending. If you arrange the loan as a physical person, it is the perfect occasion for this could be renovated, buying suburban area, recreation, acquisition of real estate or a car.If you inform the bank that take money to start a business, you are likely to get a waiver - assessment criteria are completely different entities.
3. credit history. Of course, most of the scoring program does not have direct access to your story, but it can check the availability of data about you in the "black list" drawn up by the bank employees on the basis of previously made a request to the credit bureau.

When else will not give credit

If over the past 30 days you have tried three times to take a loan and were refused, it is not worth trying to do it again.Most likely, you will be denied again.The fact that this circuit is incorporated in the program database.So do not fret, just wait a month and a half, and your chances to pass credit scoring will increase many times.

Another important factor is a credit load of the customer.The program will calculate the total amount of your loan payments, and decides, "pull" Whether you have one.

It so happens that the banks arrange the whole network of scoring, so it is not necessary to submit multiple applications for loans.If their number exceeds 3.4, it is likely you will get a rejection once in all banks.

Pros and Cons of Auto Scan

Although the program is rather high-scoring, yet it has some drawbacks:

• banks apply for payments high enough scale that is simply unattainable in many respects to the average borrower;
• did not take into account the client's specific data, such as Khrushchev in the capital can be regarded as a suitable property, but the house on the river bank somewhere in the Irkutsk region will be referred to the system as a "house in the village";
• in small banks that do not have sufficient funding for the purchase of expensive systems of scoring, verification is conducted fairly superficial;
• normal existence scoring system presupposes the existence of related infrastructure (the credit bureaus, and others.).

However, some defects can not negate the positive aspects of the use of this type of evaluation:

• system provides the most unbiased assessment, the impact of personal experience of employees is minimized;
• financial institutions that use the scoring system, offer their customers more profitable percentage, since the risk of default is reduced to a minimum;
• scoring allows the bank to reduce the number of staff involved in the processing of applications;
• decision time is reduced to 15-20 minutes;
• in the event of a negative decision by the customer will be given a list of factors that influenced the preparation of low-scoring assessment - this will correct the mistakes on subsequent calls.

In conclusion, it should be said that such a system of evaluation is fairly new to Russia.And not every bank uses it.So if you are clearly aware of their shortcomings and decided to get a loan without scoring, it is quite possible to do this, just need to find "his" bank.