New Risk Score from Equifax-FICO Alliance Identifies Which UK Consumers Can Handle More Credit.
Card issuers could safely extend credit to 15 percent more consumers
using solution that includes
Credit Capacity Index (TM) and Equifax
LONDON, Sept. 27, 2012 /PRNewswire/ — Global information solutions
leader Equifax and FICO, the innovative provider of analytics and
decision management technology, today announced the release for the UK
market of the FICO[sup.] Credit Capacity Index (TM), built on
Equifax’s market-leading risk score, Risk Navigator 4 (RN[sup.4]).
Research indicates that UK card issuers could safely extend more credit
to 15 percent more consumers on average.
Capitalizing on FICO’s patented analytic technology and
Equifax’s rich credit data and bureau characteristics
on the UK
population, the new solution from the Equifax-FICO alliance gives
lenders a more effective way to assess a consumer’s ability to
on a nationwide sample of UK accounts showed that using
the FICO[sup.] Credit Capacity Index (TM) with Equifax’s credit
risk scores to set initial credit lines would add about [pounds
Analysis shows that among low-risk consumers with the highest
RN[sup.4] scores, those with the lowest Credit Capacity Indexes were 13
times more likely to default on a new loan than consumers with a high
Credit Capacity Index.
“Lenders understand their responsibility to determine consumer
indebtedness and affordability as well as meet the requirements for
FICO developed the Credit Capacity Index using a patented analytic
for enabling growth.”