Are You Keeping Score?

Many credit professionals prefer to develop their own "scorecards" or internal credit scores to gauge a prospective or existing customer's creditworthiness. They like this approach because it is less expensive than off-the-shelf credit scores and allows them to employ specific criteria such as an existing customer's payment history or a potential customer's business history. Internal credit scores can be created in several ways. You can create a simple "heuristic" score or an objective…