Credit Models

Credit models are tools used by financial institutions to assess the likelihood that a person or business will repay borrowed money. They analyze various factors like credit history, income, debt levels, and payment habits to generate a score or prediction. This helps lenders decide whether to approve a loan, determine interest rates, and manage risk. Essentially, credit models provide a data-driven way to estimate creditworthiness, ensuring that lending decisions are fair, consistent, and based on solid evidence.