Media coverage of the denial of a Toys 'R' Us credit card to Federal Reserve Board Governor Lawrence Lindsey indicates that there are people in the industry who still do not understand either credit scoring or the basic nature of credit decisions.

A lender making a consumer credit decision is faced with predicting human behavior: Will this borrower repay this loan in a satisfactory manner, or not?

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.