An added layer of risk management for your portfolio
Most lenders acknowledge that consumers tend to regard and pay their loan obligations differently. So for your particular portfolio, getting deeper insight into the consumer's payment behavior can give you a great advantage in your risk prevention and management. Fair Isaac's Industry Option FICO® scores are designed to give you that insight.
How and why they work
Available at all three major credit bureaus, the Industry Option FICO® scores build on the predictiveness of classic FICO® scores by incorporating additional credit information that is predictive for your specific industry-bankcard, auto lending, installment lending and finance company lending.
With the Industry Options, a credit file is first scored by the "broad-based" risk scorecard system, and then by one of two industry-specific overlay scorecards - one for files with derogatory information on any type of account, one for files without. This overlay adjusts the credit bureau scores up or down. The resulting score is scaled to match the same "good versus bad" odds as the broad-based risk scores.
This unique process provides more precise, industry-specific risk assessment, utilizing the full power of the broad-based risk score's 10-scorecard system.
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