Credit selection involves application of techniques for determining which customers should receive credit.

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Credit selection is the process of evaluating the creditworthiness of potential borrowers and determining the appropriate amount of credit to extend to them. This involves using various techniques such as credit scoring, financial analysis, and risk assessment to determine which customers are most likely to repay their debts on time and which ones are more likely to default.

Credit Selection Involves Application of Techniques for Determining Which Customers