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Home | Credit Scoring Search 

Credit Scoring Central

You've just discovered the best, most comprehensive resource on credit scoring anywhere. We've compiled everything you'll need to get started in credit scoring or analyze and upgrade your current situation: plain English, easy-to-understand "how-tos," expert analysis, glossary of terms, benchmarking (who's doing what in the trade credit field), case studies of how, why, and what scoring systems were used by major companies, and even do-it-yourself templates you can download.

Downloads Today: The Ins and Outs of YESCO's Home-Grown Credit Scoring Template
Downloads Today: The Ins and Outs of YESCO's Home-Grown Credit Scoring Template At YESCO, a Salt Lake City sign-maker, they searched far and wide for a good credit scoring package that would meet their specific needs. After spending nearly a year, and looking at nine or ten different software packages, they threw up their hands and decided to develop their own. Duane Wardle, Senior Vice President & Treasurer at YESCO, submitted their template to us, and we spoke with him recently about how they put it together. . . .  keep reading
Five Keys to Making Credit Scoring a Success
Though used extensively in consumer credit and collections, as well as by the financial services community, credit scoring has been slow to catch on in the trade credit environment. However, driven by . . .  keep reading
Credit Scoring Myths Exposed
The following are six common myths about credit scoring: . . .  keep reading
Do-It-Yourself Spreadsheet Template Helps You Develop Your Own Credit Scoring Model
One of the most popular new features at the Credit Today website is our file download section. We'll periodically highlight s . . .  keep reading
What Flavor of Credit Scoring Is Right for Your Company?
Credit scoring has been around for more than three decades, but until recently it has been used primarily in the consumer market for analyzing the creditworthiness of individuals. The commercial market has been slow to embrace credit scoring, but in the past five years there has been an explosion of interest in this methodology because of the tremendous results the early adopters realized from their implementations. . . .  keep reading
The Most Prominent Types of Scoring Used Today and the Available Products
Because credit scoring is not a one-size-fits-all methodology, there may be several types of credit scoring solutions to fill all of your needs. In the commercial marketplace Judgmental Rules Based Sc . . .  keep reading
Choosing a Credit Scoring System, the Home Stretch: Making Your Final Decision
Choosing a Credit Scoring System, the Home Stretch: Making Your Final Decision Once you have learned the basics of credit scoring and determined how it can benefit your company, you need to determine what "flavor" of credit scoring is right for you. When you enter into this phase of your credit scoring due diligence, it is time to prioritize your goals and determine why you want to use credit scoring. . . .  keep reading
Case Studies in Credit Scoring: Continental Airlines Uses Scoring to Bridge Multiple Systems
Case Studies in Credit Scoring: Continental Airlines Uses Scoring to Bridge Multiple Systems A staff of four credit analysts would pull data from a variety of data sources and then use a basic credit score/MS Excel spreadsheet for financial ratios and approval of accounts. This largely manual process was cumbersome and time-consuming, and even more problematic was the fact that the approval process was largely subjective and prone to vary from analyst to analyst. In addition, there were two distinct accounts receivable systems that required analysts to toggle back and forth. . . .  keep reading
Case Studies in Credit Scoring: Ferguson Centralizes Credit Approval in a Large Decentralized Enterprise
Case Studies in Credit Scoring: Ferguson Centralizes Credit Approval in a Large Decentralized Enterprise The credit management structure at Ferguson was decentralized, with credit managers in local branches and regional credit staff covering specific geographies and working with the credit branch managers. This decentralization led to inconsistencies in the decision-making process, with some information being available in some branches but not in others. . . .  keep reading
Case Studies in Credit Scoring: Sargento Accelerates Credit Approvals with Scoring Solutions
Case Studies in Credit Scoring: Sargento Accelerates Credit Approvals with Scoring Solutions Traditionally, credit-risk assessment at Sargento was a manual, paper-based process that entailed many steps, from sending out the credit application to checking the references and calling D&B to get a credit report. The process ended when all the insights gathered were used to make a decision and communicate to the sales team whether the new customer was approved or not. This arduous process took anywhere from two to three days, a timeframe which was not competitive within the industry. This exposed us to the real possibility of losing customers to competitors pending the credit decision. It also required additional effort from the sales team to keep our customers engaged while credit decisions were being made. . . .  keep reading
Case Studies in Credit Scoring: Arlington Industries Slashes Past Dues by Applying Scoring to Collections
Case Studies in Credit Scoring: Arlington Industries Slashes Past Dues by Applying Scoring to Collections We were managing credit and collections using a variety of unique tools. No standard processes existed and all activity was based on of a weekly aging balances report. The approach was reactive: collectors started from the top of the list and worked downwards, and there was no follow-up tool for phone calls. . . .  keep reading
Case Studies in Credit Scoring: Oshkosh Truck Uses Scorecards to Centralize and Standardize Processes
Case Studies in Credit Scoring: Oshkosh Truck Uses Scorecards to Centralize and Standardize Processes Oshkosh Truck needed to centralized many divisions into one A/R system, within a shared services concept. Along with this they needed to develop standardized credit practices acceptable to the requirements of Sarbanes-Oxley. This included providing uniform credit limits that met the customer's needs and could be justified to outside auditing firms as well as establishing a uniform debt collection timetable. . . .  keep reading
An Expert Take on Credit Scoring - Why Integration Is So Important: The Six Key Requirements of a Good Automated Credit Policy
Part 2 of a 3 part series, By Robert S. Shultz
An Expert Take on Credit Scoring - Why Integration Is So Important: The Six Key Requirements of a Good Automated Credit Policy Automation of the credit and collection functions starts with credit approval and review. Determining credit risk boils down to two concerns: First, is there risk of payment being delayed, resulting in cost of funds exposure? Secondly is there risk of non-payment? Automation can help deliver the information and account visibility essential to understand these risks and distinguish between the two. Automated credit decisioning can be designed to determine the real risk and apply the appropriate policy. Credit decisions can best be defended if based on facts and consistent policy, not speculation. . . .  keep reading
Benchmarking: Who's Using Credit Scoring?
October 1, 2005
The Credit Today 2005 Credit, Collection, and A/R Staff Benchmarking Survey explored a variety of variables that have an im . . .  keep reading
Altman in CRF Journal: Having Scoring Not Enough!
We always enjoy the reading the Credit Research Foundation's journal, Credit and Financial Management Review. . . .  keep reading
Dr. Credit: Credit Pros Are in a Good Position to Leverage Predictive Analytics
Dear Dr. Credit, I heard someone mention the term "predictive analytics" at a credit meeting recently, but I didn't fully understand what they were talking about. Can you explain if this i . . .  keep reading
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