Credit Discrimination: 10.5.4.2.3 Reasons that must be disclosed when a credit scoring system is used
It is not always obvious what the actual reason for denial of credit is when a creditor uses a credit scoring system, as the system bases the applicant’s score on many different variables.141 Although the credit score is a single number, numerous factors are used to derive that number. The problem is how to isolate the variables that adversely affected an applicant’s credit score, causing the denial of the credit application.