Tag: credit scoring

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Navigating the Changing Regulatory Waters in Credit...

Whether its new regulations and enforcement actions from the Consumer Financial Protection Bureau or emerging legislation in Congress, the public policy environment for consumer...

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Marketplace Lenders Seek Credit Scoring Innovations...

Whether it is an online marketplace lender offering to refinance the student loan debt of a recent college graduate or an online small-business lender...

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The No. 1 Tactic to Optimize Your Collections...

Every portfolio has a set of delinquent customers who do not make their payments on time. Truth. Every lender wants to collect on those...

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Credit attributes: analytical decisioning building blo...

By: Teri Tassara In my blog last month, I covered the importance of using quality credit attributes to gain greater accuracy in risk models.  Credit attributes are also powerful in strengthening the decision process by providing granular views on consumers based on unique behavior characteristics.  Effective uses include segmentation,...

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The power of credit attributes in the decision process...

By: Teri Tassara In my last post, I covered the importance of using quality credit attributes to gain greater accuracy in risk models.  Credit attributes are also powerful in strengthening the decision process by providing granular views on consumers based on unique behavior characteristics.  Effective uses include segmentation, overlay...

Read More The power of credit attributes in the decision process
Credit attributes: analytical decisioning building blo...

By: Teri Tassara As building blocks to any predictive model development, it goes without saying that the better the predictive variables, also known as attributes, the more accurate the predictions. For many predictive analytic modeling shops, attributes are a key differentiator to model performance versus the competition.  It not...

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What is subprime?...

As a scoring manager, this question has always stumped me because there was never a clear answer. It simply meant less than prime – but how much less? What does the term actually mean? How do you quantify something so subjective? Do you assign it a credit score? Which...

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The power of credit attribute overlays...

Previously, we looked at the various ways a dual score strategy could help you focus in on an appropriate lending population. Find your mail-to population with a prospecting score on top of a risk score; locate the riskiest of all consumers by layering a bankruptcy score with your risk...

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Scoring 101 – Dual score strategies...

Last month, I wrote about seeking ways to ensure growth without increasing risk.  This month, I’ll present a few approaches that use multiple scores to give a more complete view into a consumer’s true profile. Let’s start with bankruptcy scores. You use a risk score to capture traditional risk, but...

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Scoring 101 – Evolution of scoring...

For as long as there have been loans, there has been credit risk and risk management. In the early days of US banking, the difficulty in assessing risk meant that lending was severely limited, and many people were effectively locked out of the lending system. Individual review of loans...

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Treatment of medical debts in scores...

By: Kari Michel The way medical debts are treated in scores may change with the introduction of June 2011, Medical Debt Responsibility Act. The Medical Debt Responsibility Act would require the three national credit bureaus to expunge medical collection records of $2,500 or less from files within 45 days of their...

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Consumers’ Personal Debt Ceiling...

With the raising of the U.S. debt ceiling and its recent ramifications consuming the headlines over the past month, I began to wonder what would happen if the general credit consumer had made a similar argument to their credit lender. Something along the lines of, “Can you please increase my...

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