Consumers who file for bankruptcy often exhibit some of the same characteristics as good credit risks. The task of separating potentially profitable accounts from potential bankruptcies requires a reliable and cost-effective tool. Gain predictive power with Bankruptcy PLUS℠ from Experian.
This powerful and robust model is easy to use and manage. Bankruptcy PLUS can be combined with a traditional risk model to improve the rank-ordering of creditworthiness. Scores range from a low of 1 to a high of 1400. The higher the score, the higher the bankruptcy risk. Based on your portfolio objectives, you set a cutoff score that will help you achieve profit goals.
Bankruptcy PLUS can assist you with:
Using a national sample, Experian® analyzed more than 500,000 consumer credit files to determine which characteristics were most predictive of future good or bankrupt account performance. More than 350 variables were tested, including length of time in file, balance-to-limit ratios, and the presence of delinquent or derogatory accounts.
While other bankruptcy risk models are segmented using traditional methods, Bankruptcy PLUS incorporates “preliminary” risk scores prior to calculating the overall risk. The preliminary risk scores create segments based on a consumer’s bankruptcy risk grade and indicate which of the multiple scorecards is most predictive for a specific consumer. This provides a significant lift in bankruptcy risk prediction.
Experian has invested significant research to level its proprietary set of attributes across all three credit reporting agencies, ensuring that Bankruptcy PLUS utilizes the richest data possible. This streamlined development reduces the occurrence of score variation among the three credit reporting agencies since score differences are driven by differences in data, not differences in the scoring algorithms.
Bankruptcy PLUS outperforms other bankruptcy risk models by accurately classifying bankruptcy risk. Meet your bankruptcy challenge head-on, and acquire quality business from a score you can rely on. Harness the predictive power of Bankruptcy PLUS today.