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5 building blocks of a great scoring system

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Innovations are changing the way credit scores work, but technology is only part of the blueprint. Here are the vital pieces for a system that helps lenders decide who gets credit and at what terms.

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5 building blocks of a great scoring system

  1. 1. BUILDING BLOCKS OF A GREAT CREDIT SCORING SYSTEM OF A GREAT CREDIT SCORING SYSTEM PREDICTIVE POWER Protect the safety and soundness of lending decisions by measuring credit risk with a proven algorithm that has been scrutinized and validated by lenders and regulators FAIRNESS TRANSPARENCY MASSIVE COVERAGE CONSUMER-CENTRICITY Explain how the score is computed and provide clear guidance to help people raise their scores Create financial opportunities that transcend social and economic lines with an algorithm that is not affected by an individuals's age, education, employment history, gender, marital status, race or wealth Comply fully with the Equal Credit Opportunity Act (ECOA) and Fair Credit Reporting Act (FCRA) Ensure nearly every US adult can be evaluated. A sound system should score 200+ million Americans. Use only data that individuals and lenders can review, challenge and correct www.fico.com/infographics www.fico.com/analytics www.fico.com/careers www.fico.com©2014 Fair Isaac Corporation. All rights reserved. Innovations are changing the way credit scores work, but technology is only part of the blueprint. Here are the vital pieces for a system that helps lenders decide who gets credit and at what terms.

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