Scoring means that forecasts are made for the future based on past experience.

The basic question is: "What is the probability of a certain event occurring?" In order to forecast probabilities of occurrence as accurately as possible, relevant data is collected and statistically analyzed in medicine, meteorology and insurance, for example.

Credit scoring is about the question of how likely it is that a person will meet their payments. This is very important information for companies and banks. It helps to make a data-based decision as to whether a loan or a purchase on account will be granted. This minimizes the risk of non-payment.

Without a credit rating, the financial default risk would have to be passed on to all consumers. Many products, services and loans would probably be more expensive - for all of us. Many transactions would take much longer. You might have to take out expensive credit default insurance for a loan - as is mandatory in other countries. Convenient payment options such as "purchase on account" on the Internet would hardly exist in their current form. Many online orders would take days to process - today it happens in seconds.

You can find further information on scoring under .