Application For Credit And Credit Score: Difference between revisions
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Latest revision as of 16:35, 1 April 2022
Definition
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]
Competences
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 |
References
- ↑ European Union/OECD (2022), Financial competence framework for adults in the European Union