Cryptocurrency Q&A
How do lenders determine the credit risk?
How do lenders determine the credit risk?
Daniele
Mon Jan 20 2025
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5
answers
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I'm curious about how lending institutions evaluate the credit risk when considering loan applications. What factors do they look into to assess whether a borrower is likely to default on the loan?
5 answers
Caterina
Wed Jan 22 2025
Typically, a higher credit score reflects a lower potential risk for the lender.
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Chiara
Wed Jan 22 2025
Credit bureau scores prevalent in the United States are frequently referred to as "FICO® Scores."
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Margherita
Wed Jan 22 2025
This term stems from the fact that many credit scores used in the country are generated using software developed by the Fair Isaac Corporation (FICO).
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Stefano
Wed Jan 22 2025
The credit score functions as a vital risk assessment tool for lenders.
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Silvia
Wed Jan 22 2025
It evaluates your creditworthiness based on your historical credit behavior.
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