Credit scoring helps lenders efficiently and consistently estimate a customers credit worthiness based on the analysis of financial statements, credit history and collateral, as well subjective judgements of the borrowers perceived character.

Women, who in many countries are unable to own land or have property titles, have been less likely to obtain loans secured by collateral. This creates a Catch-22 (reject) situation where women without collateral are unable to build the credit history crucial to bank credit scoring models. A huge segment of women-owned micro, small and medium-sized enterprises are unserved or under-served with an estimated $1.7 trillion finance gap in emerging economies.

(Note: Catch-22 refers to a problematic situation for which the only solution is denied by a circumstance inherent in the problem or by a rule)

Based on the above about credit scoring shortcomings, please argue one of the following positions.

1. Although a great credit score is crucial to secure loans and control credit risk, traditional credit scoring models put many women at a disadvantage. I think its time for a new model (please search and add your ideas and thoughts for an alternative or improved system)

2. I think credit scoring is a good rewarding system for disciplined individuals, SMEs and corporations. It improves credit quality and decreases credit and systemic risk in the economy. End of the day each system has its drawbacks (Please search and add your ideas and thoughts to approve/disapprove of this statement)

3. I think the problem is complicated and it affects applicants of both personal and SMEs loans who have no or less credit history. However, women applicants as individuals or entrepreneurs owning SMEs, are most affected especially in Asian developing countries (Please search and add your ideas to support this statement)

4. There are two approved credit scoring agencies in Malaysia one of which is known as Credit Tip-Off Service (CTOS). A CTOS score is calculated based on credit information from both CCRIS and CTOS's database. It ranges from 300 to 850. I think the criteria of CTOS overcome the disadvantages of the scoring system (Please search and add your ideas and thoughts to approve/disapprove this statement).