Which of the following is a purpose of credit scoring?

Credit scoring serves a vital role in the lending process, particularly in evaluating the risk associated with lending to a borrower. Lenders use credit scores to quantify the likelihood that a borrower will repay their debt based on their past financial behavior and current credit status. A higher credit score typically indicates a lower risk for the lender, which can influence not only the approval of a loan but also the interest rate offered. This system allows lenders to make informed decisions, assess the potential for default, and manage their overall risk exposure in their lending portfolio.

The other options related to property taxes, rental property pricing, and home value assessments do not involve credit scoring directly, as those processes depend on different factors, such as local tax laws, market conditions, and property appraisals.