We use the information you supply us when completing a Borrowing Application to obtain your credit history from a credit checking agency which is then applied to determine a credit grade.

Credit Grades

Credit grades are designed to indicate the profile and likelhood of a borrower repaying their loan in full. Generally the better the credit grade the higher the probabliity that the borrower will repay the entire loan and the lower the probability of default.

Conversely better credit grades generally attract lower interest rates as the 'risk' associated with that borrower is lower.

On Lending Hub we use a system of letterred grades from: AA, A, B, C, D, E and HR.

AA = Highest credit grade. Lowest probability of default

HR = Lowest credit grade. No credit history or history of defaults.

Managing Risk

As a lender you should take note of the Credit Grade but also other factors that may affect the 'risk profile' of a borrower. For more information on managing your protfolio see Managing a Loan Portfolio.

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