On the Lendsqr platform, you can create and apply your own credit scoring models to assess loan applications based on your unique risk appetite. For example, if your lending business prefers to avoid high-risk borrowers with poor repayment histories, you can design a scoring model that prioritizes repayment behavior and reduces loan approvals for such users.
A credit score is a number that shows how creditworthy a borrower is. Lenders use this score to decide whether to approve a loan and what terms to offer. The score comes from analyzing data like a customer’s financial history, repayment records, income level, and other personal or behavioral patterns. Algorithms calculate the score using these data points, and many lenders use custom rules to reflect their risk preferences.
Lendsqr gives you the tools to build your own scoring model. It doesn’t force a generic model on your business. Instead, you get full flexibility to create a system that aligns with your loan products, target audience, and risk controls.
With a tailored credit scoring model, you can automate risk checks, reduce bad loans, and make faster, smarter lending decisions.
Also read: Why gig workers are denied loans, and how better credit scoring helps –