Propensity Score

What is a Propensity Score?

A Propensity Score is a type of Credit Scorecard that typically predicts your likelihood of using a credit facility if you are given one. For example, people who use credit cards to borrow money and pay off only the minimum amount (called Extended Credit Takers) will be very profitable compared to someone who pays off the balance in full every month (known as Full Payers), so a propensity scorecard will help determine how profitable a new account might be.


Q: Will I see my propensity score?

A: No. Scores calculated by lenders or their requirements are never made public knowledge, and should be treated as 'internal use only'.

Q: Is it the same as my credit score?

A: Not exactly, as your Credit Score is intended to predict the likelihood of you defaulting on a payment, whereas a propensity score's main purpose is to work out how profitable a customer you are likely to be. It is used by lenders to assess your creditworthiness all the same.

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