Credit-scoring System
Credit scoring is a system used by Barclays and most major banks and finance companies to assess customer applications for borrowing. The score is one-way banks, credit card companies, and other institutions assess the likelihood that you can or will be able to pay off any debts you accumulate. It is a statistical analysis performed by lenders and financial institutions to access a person’s creditworthiness.
It involves calculating a rating, or score, from the information you give in your application, including your age, job, and existing financial commitments. Checks are also made with credit reference agencies to see if they hold any additional information about you that may influence our decision. If you’re an existing customer, we may also look at the way you have managed your account or previous borrowing with us. If the overall credit score is high enough, we could give you the credit you’ve asked for. A higher credit score indicates that your current financial circumstances and your historical behavior demonstrate a willingness and ability to pay off any loans you may be approved for.
Fair Isaac Corporation’s credit scoring system, known as a FICO score, is the most widely used credit scoring system in the financial industry.
- Poor credit is considered anyone with a FICO score under 630
- Average or Fair credit rating will be between 630 and 690
- Good Credit is between 690 and 720
- Excellent credit is anything above 720.
