Credit scores provide an extremely valuable guide to future risk based solely on credit report data. By using credit scoring, a lender can quickly and objectively evaluate your credit history in a consistent manner, and determine the likelihood that you will repay the loan as agreed. The use of credit scores not only improves the accuracy of the analysis of your credit history, but does so in a way that enhances the efficiency and consistency of the underwriting process.

The use of credit scores has dramatically increased the speed at which many credit decisions can be made. Especially for consumers with relatively good credit, approvals for loans can be given in a fraction of the time previously required, without any manual review of the information.

Credit scores increase the potential for customized pricing of credit based on the risk an individual poses. Increased ability to customize the price charged based on credit allows lenders to approve a larger share of consumers for loans.

In addition, credit score based automated reviews of credit can reduce discrimination in lending because the automation of decision-making removes or reduces the influence of subjective bias.