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Credit Scoring BasicsFICO World PreviewFICO World Preview
A statistical process whereby information about aA statistical process whereby information about a credit applicant or an existing accountholder is converted into a numerical score.converted into a numerical score.
This score is then regarded as a measure of thedit i k f th i di id l d (i thcredit risk of the individual concerned (i.e., the
IDENTIFYING (PERSONAL) INFORMATION1 IDENTIFYING (PERSONAL) INFORMATIONI. Wishfor Credit 12 Lost Lane Sam’s Gas & Oil805 Main St. Somewhere, USA 66666 AttendantAnytown, America 77777 Date of Birth 1-25-45
SSN 888 88 8888PUBLIC RECORD (LEGAL ITEMS)
1
2 ( )9-06 Judgment $1000 Satisfied 3-07
COLLECTION ITEMS7-05 Collection $500
2
3TRADE LINE (ACCOUNT) INFORMATIONIndustry Date Date High Balance Current Historical
Reported Opened Credit Rating RatingBankcard 2-10 3-89 $5,000 $0 Current 120+, 6 yrs ago
4$ , $ , y g
Auto loan 2-10 7-07 8,000 1,500 CurrentRetail 12-09 6-03 1,000 200 30 days
INQUIRIESDate Industry Date Industry7 01 09 B k 6 01 09 A t fi
A question on the applicationA question on the applicationFor example:»# of inquiries in the last 6 months»# of inquiries in the last 6 months»Average balance on revolving accounts
ATTRIBUTE
Answer given by the applicant»Example for # of inquiries: 4
45 day de45 day de--dupedupe 30 day buffer30 day buffer
» The credit bureau risk score models observe inquiries over a 12-month period. p
» Auto- and mortgage-related inquiries that occur 30 days prior to scoring have no effect on the score. Outside this 30-day period, auto and mortgage related inquiries that occur within any 45 day
f CO SPreview of Full FICO World SessionPresented by multiple FICO experts
» FICO Score Basics» Use of Scores Across the Account Lifecycle» Tracking and Monitoring» Risk Management – Customer Management» Risk Management – Originationsg g
f CO SPreview of Full FICO World SessionPresented by multiple FICO experts
» FICO Score Basics» Use of Scores Across the Account Lifecycle» Tracking and Monitoring» Risk Management – Customer Management» Risk Management – Originationsg g
» In April please join us for this practical set of sessions included in p p j pyour registration price!
» The Full FICO World session include these additional sections» Use of Scores Across the Account Lifecycle» Use of Scores Across the Account Lifecycle» Tracking and Monitoring» Risk Management – Customer Fundamentals» Risk Management - Originations
» Learn with the experts, ask questions about your portfolio and take away sensible tips that you can use to be successful in your y p y yjob.
Get your 30% discount on FICO World registration!» Register at www.fico.com/ficoworld
Get your 30% discount on FICO World registration!» Register at www.fico.com/ficoworld» Register at www.fico.com/ficoworld» Use code WEB70
Join us at these upcoming FICO World Previews
» Register at www.fico.com/ficoworld» Use code WEB70
Join us at these upcoming FICO World Previewsp g» March 3 - Solving the Top Issues in Collections & Recovery» March 17 - Improve Your Customers' Experience with Fraud
Management - Success Story
p g» March 3 - Solving the Top Issues in Collections & Recovery» March 17 - Improve Your Customers' Experience with Fraud
Management - Success StoryManagement Success StoryManagement Success Story