Credit scoring systems enable creditors to
evaluate millions of applicants consistently and impartially on many
different characteristics. But to be statistically valid, credit scoring
systems must be based on a big enough sample. Remember that these systems
generally vary from creditor to creditor.
Although you may think such a system is arbitrary or impersonal, it can
help make decisions faster, more accurately, and more impartially than
individuals when it is properly designed. And many creditors design their
systems so that in marginal cases, applicants whose scores are not high
enough to pass easily or are low enough to fail absolutely are referred to
a credit manager who decides whether the company or lender will extend
credit. This may allow for discussion and negotiation between the credit
manager and the consumer.
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