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New Credit Models to Expand Scores but May Risk Approval Trap

Millions will gain credit scores under revised systems, yet experts caution that easier scoring could lead to misguided loan approvals.

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Terms & Concepts
  • Credit Score: A numerical representation of a person's creditworthiness, used by lenders to assess the risk of approving loans.
  • Credit Model: A system or algorithm used to calculate credit scores based on a borrower’s financial history and behavior.