Application Score

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.

The Application Score is based on the following information, which the must be submitted with the application; full name, address and phone number, length of time at address, gender, date of birth, marital status, number and age of dependents, residential status, occupation, name and address of employer, length of employment, monthly income, outstanding credit obligations, bank name and address, sort code, account number, account name and the amount of credit required.

Although an Application Score does not take into account any information from the applicant’s credit report, numerous studies have shown that Application Scores are surprisingly good at picking out the best (most creditworthy) applicants and indeed, much more efficiently than if a trained credit underwriter looks at the application and makes a lending decision on a subjective basis.

Application Scores were in very wide use prior to the evolution of modern credit reports, and are still used by some lenders to reject the ‘worst’ of applications prior to purchasing credit reports from the credit reference agencies, which helps reduce otherwise unproductive costs in credit assessment. Some lenders also use Application Scores at the top end of the credit scoring scale, where the scores are so good that even adverse credit information wouldn’t make much difference. Applicants who are accepted on this basis are known as ‘super-accepts’.

Application Scores, just like the 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. The answers given on any application form can then be analysed to see what the chances are of paying on time or defaulting.

See credit scoring for more information.

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