1-1 What is the JCIC Credit Score?
A credit score is a numerical measure based on mathematical algorithm to reflect relevant credit profiles and creditworthiness of a data subject. The JCIC Credit Score is calculated on credit information within the disclosure period in the JCIC database. Key factors considered include the credit history, the payment history, the amount of money owed, credit applications, and a mix of other credit information. The JCIC Credit Score reflects the latest information in our database, and therefore may change with time accordingly.
1-2 When do we need the JCIC Credit Score?
When lenders consider granting a customer a loan, revolving fund, or credit card, it is necessary for them to check the credit records of the customer and use them as a reference in decision making. Credit scoring increases the consistency and objectivity of credit evaluation by providing a risk-ranking result. However, lenders should be aware that the credit score is only one of the credit references in the decision making process and does not constitute the sole base for a lending decision. Lenders should gather more credit information, in order to make a more thorough decision.
1-3 Do other countries have Consumer Credit Scores?
In the U.S. and the U.K., the Consumer Credit Score has been in place for years. And by the effort of the World Bank, most countries in Asia have also promoted their credit score services. In the United States, which has the most developed credit scoring system, the FICO score is the most widely used type of credit score.