Application scores are a type of credit score used by lenders to decide which applicants are to be taken on, based purely on the information given in the credit application form. Although an application score does not take into account any information from the applicants credit report, studies have shown that application scores are surprisingly good at picking out the best applicants and indeed, much more efficiently than if a trained credit underwriter looked at the application and made a judgement on a subjective basis.
You can see your own application score using our Free Credit Score service, and compare it to your geodemographic score, is based instead on the public information released (insolvency and judgment information) for your postcode. On checkmyfile you can also compare your application score against the credit scores calculated from your various credit reports.
Application scores, just like credit scores calculated on credit reports, and like geodemographic scores, are based on the concept that the past is a guide to the future. The answers given on a large batch of previous application forms are analysed to see which ones predict defaults. Your own answers can then be analysed to see what your chances are of paying on time or defaulting. See credit scoring for more information.
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