Credit Scoring techniques revealed

karatedragon

My score was 983 on Equifax's thingy

never-in-doubt

karatedragon wrote: »

My score was 983 on Equifax's thingy

yes mate and I bet they used that C+ code above lol

random! :beer:

hax_2

I tried it on my C#, I got a score of 172, no wonder I'm being refused credit cards:rotfl:

Ritchie74

Apologies, not looked at all the links, it's late, so sorry for any repitition.
It's all the obvious info that goes into a scorecard, including (and I am not referring to any particular bank/ product scorecard here, just being general) total Revolving limit, total revolving utilisation, front of wallet utilisation, exposure:income, worst status L3/6/12/24m etc months (ie num missed payments/ defaults/ arrangements etc), bureau score (the one banks buy from EX/EQ/CC not the one customer buy) time at bank/address/on ER, searches L3m etc, homeowner status, any info on financially linked persons etc etc.
These would typically feed into a scorecard with potentially different weightings applied to each item (eg +20 if worst stat=0, +13 if util <40%).
also most banks will have policy rules (straight declines- ie don't even make it to scoring stage)... typically things like thin file (no CAIS info) and not on ER, public records info, salary <xxxxx, NHunter warning, no phone number etc etc.

Rules and scorecards are typically built on current populations and as these change, the scorecards also need to change regularly (typically every 1-2 years). The are built using statistical techniques using historical applications and subsequent behaviour. Measurements of power include the GINI coefficient. Reject Inferencing techniques/analysis are also used.

Borderline scores may be referred to an underwriter.

Magnitude of application score or bureau score may determine product offered/ APR assigned and Limit designated.

I've not put anything proprietary on here and nothing that cannot be probably found on this forum already and hence I am commiting no offence (before anybody accuses me lol).

NID mate, loving the idea of living off the missus, I might broach that one myself tomorrow... she's only on just over minimum wage at the mo though...

Ritchie74

Oh and a couple you may not have thought of...
Age and Mosaic/Cameo/etc (Postcode demographics).
One important thing to note is that, in a scorecard, if you fall down in one area only, you will not be automatically declined (as it would then be a Policy Decline). Therefore, if you have been declined, it's a safe bet that you have either failed a policy rule, or are not making the mark in at least two of the scoring attributes.

Google Propensity modelling, Logistic Regression, SAS proc logistic and univariate bad analysis, GINI and KS for more info on the stats side (e.g. how the scorecard components and associated weightings are decided).

That's all folks, bedtime for Richard!

unidentified

total Revolving limit, total revolving utilisation, front of wallet utilisation, exposure:income, worst status L3/6/12/24m etc months (ie num missed payments/ defaults/ arrangements etc), bureau score (the one banks buy from EX/EQ/CC not the one customer buy) time at bank/address/on ER, searches L3m etc, homeowner status, any info on financially linked persons etc etc.
These would typically feed into a scorecard with potentially different weightings applied to each item (eg +20 if worst stat=0, +13 if util <40%).
also most banks will have policy rules (straight declines- ie don't even make it to scoring stage)... typically things like thin file (no CAIS info) and not on ER, public records info, salary <xxxxx, NHunter warning, no phone number etc etc.

What is "front of wallet utilisation"?

or "Exposure income"?

And what is the difference between the report from EX/EQ/CC that banks get tha we get?

And "Postcode demographics" <--- what the ?? why should this have anything to do with an application?

"also most banks will have policy rules (straight declines- ie don't even make it to scoring stage)... typically things like thin file (no CAIS info) and not on ER, public records info, salary <xxxxx, NHunter warning, no phone number etc etc."

Interesting, since such things as warning were never supposed to mean an instant decline. The things they don't tell you.

izools

unidentified wrote: »

What is "front of wallet utilisation"?
Amount Owed : Total Limits


or "Exposure income"?
Total Limits : Annual Income


And what is the difference between the report from EX/EQ/CC that banks get tha we get?
Banks can't see unrecorded (Other) enquiries / quotation searches / associate searches. Nor can they see the names of your creditors, only what type of account you have with them


And "Postcode demographics" <--- what the ?? why should this have anything to do with an application?
Postcode demographics refer to social class, average income, unemployment levels, industry type, etc, within a given postcode area. This part of scoring carries a minuscule weight typically unless the applicants credit file is thin on the ground.


"also most banks will have policy rules (straight declines- ie don't even make it to scoring stage)... typically things like thin file (no CAIS info) and not on ER, public records info, salary <xxxxx, NHunter warning, no phone number etc etc."

Interesting, since such things as warning were never supposed to mean an instant decline. The things they don't tell you.
Wrong, some creditors require applicants to have a landline. Most require applicants to be on the ER. Most require applicants not to have outstanding court judgements. A lot have minimum income requirements. Failing to meet these will result in not even being credit checked for decline to be generated.

Aquacard to a pre-screen of all applicants so that they don't take anyone who would generate a "Credit Policy Decline" through a full application.

See responses above in red

incesticde

I posted something last week that's relavent to this thread, it's barclaycard explaining credit scores

http://forums.moneysavingexpert.com/showthread.html?t=2312363

never-in-doubt

incesticde wrote: »

I posted something last week that's relavent to this thread, it's barclaycard explaining credit scores

http://forums.moneysavingexpert.com/showthread.html?t=2312363

Yes that is more their front loaded ones, I think on here we're seeking the actual process model for scoring, i.e. what attributes make the score and why, how and what kind of thing....

we all understand the principles, i.e. how they make a score or the elements of the score, but we want to go higher - much higher to like developer stage/underwriting level :D:D

never-in-doubt

Ritchie - hey up matey..... Were your ears burning lol..

Have you moved then, like the new area or miss the old?

Interesting reply.... you stayed within the legal parameters with that... you still fail to amaze me with your knowledge in this field but you never cross the line!

I think we need to get you drunk, spike your drinks and then you'll spill the beans... hehe

Are you coming to the big meet in manc? We can share the train hehe: Who wants to meet up?