Scoring is a special model based on statistical methods, prepared by the Azerbaijan Credit Bureau (ACB) to determine the behavior of borrowers and support the financial inclusion.
This model, which has a fairly high forecasting power (Gini coefficient - 66.3), was developed within the framework of joint cooperation between ACB and Turkey's "Kredi Kayıt Bürosu" (KKB). The scoring model performs the study of borrower behavior based on the analysis of data collected about credit history subjects in ACB and assigns individual ratings based on the results obtained, and the score scale is evaluated between 1-1000.
The scoring system has several advantages for both borrowers and financial institutions.
For financial institutions:
1. More accurate assessment of credit risks;
2. Make better, faster and more dynamic decisions;
3. Ensuring further accessibility of credit terms;
4. More precise determination of the credit limit;
5. More accurate determination of the borrower's ability to pay.
1. Ability to obtain low interest rates on credit cards and loans;
2. Objective evaluation of borrowers (those with the same details receive the same score);
3. Obtaining a loan in a shorter time and with fewer documents;
4. Possibility of increasing of credit or credit card limit faster and in a short time of period.
During the calculation of the score, the data collected in the following categories are involved:
1. Your past payment history and behavioral performance;
2. Your currently active loans and payment behavior;
3. The longevity of your credit history and compliance with the procedures set by financial institutions;
4. Types of loans in your credit history and their purpose;
5. Your updated loans and behavioral performance on them;
6. Demographic information of borrower.
Borrowers should be guided by the above-mentioned categories in order to have a better credit score.