Which of the following is true about credit scoring systems?
A)Lower credit scores are better than higher credit scores.
B)The whole credit scoring system is based on extensive statistical studies.
C)Credit unions calculate and sell credit scores to lenders.
D)Females receive higher credit scores than males.
E)The stronger the personal traits of a person,the lower his or her credit score is.

Question

Quizplus · Accepted Answer

Credit scoring systems are purely based on statistical data and algorithms, and are designed to predict the creditworthiness of an individual. Lower credit scores indicate higher credit risk, and credit unions do not calculate or sell credit scores to lenders. Credit scores do not take into account personal traits such as gender, but rather factors such as payment history, debt-to-income ratio, and length of credit history.

Which of the Following Is True About Credit Scoring Systems