Application For Credit And Credit Score

From Open Risk Manual


Application For Credit And Credit Score. In the context of the Financial Competence Framework, Application For Credit And Credit Score is a topic in the Planning And Managing Finances subject matter domain.[1]


Mastering the role of Application For Credit And Credit Score in financial literacy context requires the following competences:

Code Competency Description Competency Type
304 Aware of the existence and main characteristics of credit scoring system, if available in a country Knowledge
305 Aware that a positive credit score can increase the likelihood of accessing credit and reduce the cost of credit Knowledge
306 Aware of the methods used to create credit scores, or to determine access to and price of credit may use big data and data analytics and may change over time Knowledge
307 Aware that providers may react differently to the information contained in a credit score Knowledge
308 Aware that income such as bonuses, windfalls or gifts may not be taken into account when calculating disposable income for credit purposes Knowledge
309 Aware that credit providers may seek information about a borrower’s ability to repay and that this may include accessing a credit score collected by a third party Knowledge
310 Knows what factors are taken into account in a credit score (including the use of personal data) Knowledge
311 How to access information on personal credit score and who to speak to in case of discrepancies Knowledge
312 Asks which information is being used to assess ability to repay credit Skill
313 Takes into account the ways in which certain actions and behaviours will impact on a credit score (including actions monitored through big data, where relevant) Skill
314 Takes steps to improve credit score if necessary Skill


  1. European Union/OECD (2022), Financial competence framework for adults in the European Union