The five criteria of credit scoring are generally as follows: 40% is based on payment history (people are penalized for late or missed payments); 35% is outstanding debt (people are hurt by having too much debt); 10% is account types (diverse types of credit are good); 10% is credit age (longevity and consistency are valued), and 5% is new activity (a flurry of new accounts can be a red flag).

While Bermuda’s banks do not employ credit models that are used in the US (FICO) — they do evaluate an applicant’s use of credit, based in part on the factors listed above.

Accordingly, the BBA asks all potential borrowers to be ready to share their full credit history with their lenders so that an accurate lending decision can be provided.