Credit Scoring Quotes

Waiving debts corrupts the credit culture.

I learned how to lend money by cleaning up the messes of others who had made loans before me.

The business of a bank is to lend money; which amounts, nowadays, to lending credit.

Subprime mortgages, typically defined as those issued to borrowers with low credit scores, make up roughly the riskiest one-third of all mortgages.

In America, surveillance has always played an outsized role in the relationship between creditors and debtors.

Let's look at lending, where they're using big data for the credit side. And it's just credit data enhanced, by the way, which we do, too. It's nothing mystical. But they're very good at reducing the pain points. They can underwrite it quicker using - I'm just going to call it big data, for lack of a better term: "Why does it take two weeks? Why can't you do it in 15 minutes?"

Consumer banking - selling debt to middle class families - has been a gold mine.

Improvements in lending practices driven by information technology have enabled lenders to reach out to households with previously unrecognized borrowing capacities.

Making loans accessible to millions of the previously unbankable customers is a noble goal. Getting them hooked to such loans isn't.

There are hundreds of millions of people around the globe who could safely repay loans but nonetheless do not have access to a line of credit. Financial institutions in developing economies are broken and inefficient, and hard-working people have not been given the chance to establish a credit history.

Ours is an economy that depends on the availability of credit at affordable interest rates.

There is no class of people in the world, who have such good memories as creditors.

In my own work, I have written about how our public sector bank officials avoid making any new lending decisions - because lending always exposes them to some (infinitesimal) risk of being blamed for the loan going wrong.

What the banking system needs is creditors who monitor risk and cut their exposure when that risk is too high. Unlike regulators, creditors and counterparties know the details of a deal and have their own money on the line.

It is the quality of lending over the quantity of lending.

No one lives on credit in France because banks don't allow overdrafts and zero percent credit cards do not exist.

Credit ratings and risk weightings must undergo a thorough process of review and revision. No security or instrument on the planet should have a zero risk weighting.

I want to see a new system. I believe that the credit scoring system is broken. That's my belief.

The way the credit cards were made in the '80s to be a people's form of capitalism and be able to make it so that you could get a loan that you would have been denied previous, now that's the way stocks are.

The only people that a bank will loan money to is the very people who don't need it.

You can't grow unless your banking system is expanding and you are extending credit.

Banks lend by creating credit. They create the means of payment out of nothing

They explained to me that the bank cannot lend money to poor people because these people are not creditworthy.

The biggest challenge for me, for all of us, was that the consumer-credit market was very, very new for India and for ICICI. I was trying to create something that was not just new for me but absolutely unknown to the organization and the country as a whole.

I don't believe there's any evidence that credit scoring is a risk factor. What is it about someone having a worse credit score that makes them a worse driver? (Insurers) can't answer that.