Creditworthiness assessment models

Creditworthiness assessment models evaluate whether a person or organization is likely to repay borrowed money responsibly. They analyze financial information, such as income, debts, and payment history, using statistical algorithms to produce a credit score or rating. This score helps lenders decide if they should approve a loan and under what terms. The models consider various factors systematically, aiming to predict future behavior based on past financial actions. Overall, these models provide a structured, data-driven approach to assessing risk, making lending decisions fairer and more consistent.