Bankruptcy risk score

Bankruptcy risk score

A bankruptcy risk score is a number that indicates the likelihood of an individual filing for bankruptcy. Although it has been used for over twenty years to assess risk in lending, few consumers know of it. It is related to the better-known credit score, but unlike credit scores, bankruptcy risk scores are not sold to consumers by any of the credit bureaus. [cite web |author=bankrate.com |title=This secret score can hurt your credit |publisher=msn.com |date=date unknown |url=http://moneycentral.msn.com/content/Banking/Yourcreditrating/P137322.asp |accessdate=2007-08-12] Consequentially, individuals have little or no way of knowing what their bankruptcy risk scores are or how to adjust them downward.

This is also referred to as debt analysis which allows lenders the ability to assess a customers' risk in taking out a loan. One can improve their score by paying bills on time, keeping balances low, and having few revolving accounts.

References

Equifax, a US credit bureau, offers a bankruptcy risk score called Bankruptcy Navigator Index to its commercial clients.


Wikimedia Foundation. 2010.

Игры ⚽ Поможем сделать НИР

Look at other dictionaries:

  • Credit score (United States) — A credit score in the United States is a number representing the creditworthiness of a person, the likelihood that person will pay his or her debts. Lenders, such as banks and credit card companies, use credit scores to evaluate the potential… …   Wikipedia

  • Z-Score Financial Analysis Tool — The Z score formula for predicting bankruptcy was developed in 1968 by Edward I. Altman, a financial economist and professor at the Leonard N. Stern School of Business at New York University. The Z score is a multivariate formula that measures… …   Wikipedia

  • Beta Risk — The probability that a false null hypothesis will be accepted by a statistical test. This is also known as a Type II error. The primary determinant of the amount of beta risk is the sample size used for the test. The larger the sample tested, the …   Investment dictionary

  • Altmans Z-score — Inhaltsverzeichnis 1 Historische Bedeutung 2 Technische Details 2.1 Das Z Faktorverfahren 2.2 Das Z Faktorverfahren 2.3 Das Z Faktorverfahren …   Deutsch Wikipedia

  • Z-Score — Inhaltsverzeichnis 1 Historische Bedeutung 2 Technische Details 2.1 Das Z Faktorverfahren 2.2 Das Z Faktorverfahren 2.3 Das Z Faktorverfahren …   Deutsch Wikipedia

  • credit score — Numerical calculation that creditors use to evaluate the creditworthiness of someone applying for credit, such as a mortgage or credit card. High credit scores (over 700) indicate less risk that you will default on payments, and low scores (under …   Law dictionary

  • Dominance-based rough set approach — (DRSA) is an extension of rough set theory for multi criteria decision analysis (MCDA), introduced by Greco, Matarazzo and Słowiński. [1][2][3] The main change comparing to the classical rough sets is the substitution of the indiscernibility… …   Wikipedia

  • Dominance-based Rough Set Approach — (DRSA) is an extension of rough set theory for Multi Criteria Decision Analysis (MCDA), introduced by Greco, Matarazzo and Słowiński Greco, S., Matarazzo, B., Słowiński, R.: Rough sets theory for multicriteria decision analysis. European Journal… …   Wikipedia

  • Atkins Nutritional Approach — Atkins Nutritional Approach, popularly known as the Atkins Diet or just Atkins , is a well known low carbohydrate diet created by Dr.Robert Atkins from a diet he read in the Journal of the American Medical Association and utilized to resolve his… …   Wikipedia

  • Calendar of 1997 — ▪ 1998 JANUARY JANUARY 1       Ghanaian Kofi Annan replaces Egyptian Boutros Boutros Ghali in the position of United Nations secretary general.       Among those knighted by Queen Elizabeth II in the annual New Year s Day ceremony is pop musician …   Universalium

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”