Application For Credit And Credit Score

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.

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