Lesson 3 of 10
How a scorecard works
A scorecard turns information about a borrower into points, adds them up, and maps the total to the odds of repaying. Each step is simple, which is why scorecards remain widely used in consumer lending.
Published 11 October 2026 · Listen to this lesson
In this lesson
- Step 1: decide what 'bad' means
- Step 2: group each characteristic
- Step 3: weigh the characteristics together
- Step 4: scale the points
- Try it
- Why the points matter