Are You Creditworthy?

The notion "creditworthiness" can be defined as a presumed ability to meet agreed deadlines related to repaying the credit and the interest accrued without affecting the vitality of the borrower, i.e. the repayment process should be based on the income received in the process of the borrower's usual activity, without affecting adversely his/her financial situation or financial results as well as other business entities.
An important point in conducting the credit activity is the thorough analysis of the
business activity and the income received in this business activity is taken as a fulcrum. It
is necessary that a number of conditions be observed, namely:

• The credit extended as an absolute value should meet the real needs of the borrower;

• ƒThe credit period should correspond exactly to the circulation speed of the resources

for the securing of which it has been extended;

• ƒThe profitability of the borrower's business activity should entirely cover the credit

amount, the interest rate, the charges and the risks, calculated in the credit analysis.


Alternative types of credit scoring have been around for years,
taking into account factors not always captured by traditional scores,
such as whether borrowers pay their cellphone bills promptly. They've
been used to assess the creditworthiness of consumers with little or no
traditional credit history, including those in developing countries.

Lenders are trying to use vast troves of data, financial and otherwise, as a modern replacement for the gut
feeling a banker might have had about a potential borrower a generation or two ago.


Experian is examining social media data to provide credit scores for
businesses too young or small to have a credit history, said Eric
Haller, executive vice president of research unit Experian Data Labs in
San Diego.