Discussion - Personal Credit Scores

You are sitting at a bank loan officer's desk, applying for a fairly large loan. The loan officer explains the bank's policy of using a credit-scoring model in which you have to attain a minimum cutoff score to receive your requested loan. 

"We do this to guard against a bad credit risk," the loan officer tells you. 

Do you feel that the credit-score model is an accurate measure for determining credit-worthiness? Share your thoughts and/or suggestions about this practice where a bank uses cutoff scores to determine credit risks. Support your thoughts with details and examples from your readings and studies.