Credit scoring is essential for credit providers to evaluate borrower creditworthiness and manage risks effectively. This course offers a fundamental understanding of credit bureau scoring, vital for professionals involved in credit assessment and score interpretation. Whether setting credit policies or determining application cut-offs, grasping credit scoring's basics is crucial. Learners will gain insights into credit scoring's value for businesses and its role in risk assessment processes. Overall, this course equips learners with the knowledge needed to navigate credit assessment effectively and contribute to sound decision-making within credit provision contexts.

What you will learn:

At the end of this course, the learner should be able to:

• Explain credit bureaus' role in mitigating asymmetric information.
• Define the correlation between credit reporting and credit scores.
• Differentiate between positive and negative data.
• Identify credit-scoring models as decision-making tools.
• Explain credit score calculation methods.
• Define application and behavioural scoring distinctions.
• Identify the probabilities involved in credit scoring.
• List scoring models' pros and cons.
• Understand credit scores' role in application processing.
• Describe the use of cutoffs in credit scoring models.
• Understand scorecards' function in the credit cycle.
• Define scorecards' utility for credit providers.
• Outline the steps in developing an internal scorecard.

Course Content:

• Section 1: History of credit, credit bureaus & credit scores
• Section 2: Understanding credit scoring
• Section 3: Utilising scorecards in your business

Who Should Attend:

Any person working in a credit environment that needs to understand how credit scoring works and is used within credit assessment practices.

Entry Requirements:

There are no entry requirements for this course.

Course Structure:

This course is only available in an online learning format. The course includes learning activities, videos and quizzes.

Assessments:

Learners will need to complete the online quiz for this course.

Accreditation:

This course is not accredited.

Certification:

 A Certificate of Successful Completion will be issued upon completion of the course.

Duration:

1 – 2 hours