topic Re: Experian "Bankruptcy Watch" scoring model in General Credit Topics

Experian "Bankruptcy Watch" scoring model

SouthJamaica — Wed, 28 Jun 2017 19:19:54 GMT

I just got turned down by a small credit union for a personal line of credit.

The adverse action letter indicated that my credit score of 666 was obtained from Experian "Bankruptcy Watch", where "scores range from a low of 1 to a high of 999".

The score seems strange, since my EX scores on MyFICO ranged from 705 to 827 at that time.

The negative factors cited for the score were:

29-balances on revolving accounts

27-number of inquiries for installment loans

13-average age of trades

26-number of open installment trades

29 is odd because although my utilization is higher than my usual 1%, it's only 3%

27 is odd because i almost never apply for installment loans, although I did apply for one a few months ago

13 is to be expected since my EX AAOA is less than 3 years

26 is odd because the only open installment loan I have on EX is my little SSL which is at 6.2%

Re: Experian "Bankruptcy Watch" scoring model

Anonymous — Thu, 06 Jul 2017 00:25:53 GMT

Is this a new scoring model, an old one, or simply a different name for an existing one?

It sounds like the first reason code is straight up BS.

The one about inquiries for installment loans and number of installment loans basically should state "...presence of..." as in each example you only have 1. If the "number" (1) is too many, than the mere presence of either is an issue for that scoring model so it should be worded as such.

Re: Experian "Bankruptcy Watch" scoring model

Anonymous — Thu, 06 Jul 2017 01:11:05 GMT

Here is some info about BW:

http://www.experian.com/assets/consumer-information/product-sheets/bankruptcy-watch.pdf

It uses some language that suggests it may use trended data in its model.

This article gives a broader view of bankruptcy scoring:

http://www.creditcards.com/credit-card-news/bankruptcy-risk-score-1270.php

It discusses BankuptcyPredict, which may have been the predecessor to BW at Experian.

Re: Experian "Bankruptcy Watch" scoring model

Anonymous — Thu, 06 Jul 2017 02:31:46 GMT

CGID, good looks on the links. The first link has a CR of 2009 at the bottom and the second cites 2008. Has this model been around for nearly a decade? I'm surprised I haven't heard of it. Is it just not that common? I do find it interesting that the use of trended data is suggested.

Re: Experian "Bankruptcy Watch" scoring model

CreditInspired — Thu, 06 Jul 2017 07:53:37 GMT

Thanks so much CGID for the links. Very informative info. Like BBS, I wasn't even aware of this type of data. Not surprising in my case though since I'm fairly new to educating myself about everything credit-related.

Re: Experian "Bankruptcy Watch" scoring model

Thomas_Thumb — Thu, 06 Jul 2017 12:17:35 GMT

@SouthJamaica wrote:
I just got turned down by a small credit union for a personal line of credit.

The adverse action letter indicated that my credit score of 666 was obtained from Experian "Bankruptcy Watch", where "scores range from a low of 1 to a high of 999".

The score seems strange, since my EX scores on MyFICO ranged from 705 to 827 at that time.

The negative factors cited for the score were:

29-balances on revolving accounts
27-number of inquiries for installment loans
13-average age of trades
26-number of open installment trades

29 is odd because although my utilization is higher than my usual 1%, it's only 3%
27 is odd because i almost never apply for installment loans, although I did apply for one a few months ago
13 is to be expected since my EX AAOA is less than 3 years
26 is odd because the only open installment loan I have on EX is my little SSL which is at 6.2%

The only EX model I know of that has a range of 1 to 999 is their Tele-Risk model (partial table pasted below).

EX has provided a Fico Bankruptcy score as well but, it has a different range [250 to 900] - also pasted below.

Re: Experian "Bankruptcy Watch" scoring model

SouthJamaica — Thu, 06 Jul 2017 16:43:29 GMT

@Thomas_Thumb wrote:
@SouthJamaica wrote:
I just got turned down by a small credit union for a personal line of credit.

The adverse action letter indicated that my credit score of 666 was obtained from Experian "Bankruptcy Watch", where "scores range from a low of 1 to a high of 999".

The score seems strange, since my EX scores on MyFICO ranged from 705 to 827 at that time.

The negative factors cited for the score were:

29-balances on revolving accounts
27-number of inquiries for installment loans
13-average age of trades
26-number of open installment trades

29 is odd because although my utilization is higher than my usual 1%, it's only 3%
27 is odd because i almost never apply for installment loans, although I did apply for one a few months ago
13 is to be expected since my EX AAOA is less than 3 years
26 is odd because the only open installment loan I have on EX is my little SSL which is at 6.2%

The only EX model I know of that has a range of 1 to 999 is their Tele-Risk model (partial table pasted below).
EX has provided a Fico Bankruptcy score as well but, it has a different range [250 to 900] - also pasted below.

The telecommunications score model?

https://www.thefreelibrary.com/Experian+Introduces+the+Tele-Risk+Model%3b+New+Tool+Increases...-a068912226

Re: Experian "Bankruptcy Watch" scoring model

SouthJamaica — Thu, 06 Jul 2017 16:52:57 GMT

@Thomas_Thumb wrote:
@SouthJamaica wrote:
I just got turned down by a small credit union for a personal line of credit.

The adverse action letter indicated that my credit score of 666 was obtained from Experian "Bankruptcy Watch", where "scores range from a low of 1 to a high of 999".

The score seems strange, since my EX scores on MyFICO ranged from 705 to 827 at that time.

The negative factors cited for the score were:

29-balances on revolving accounts
27-number of inquiries for installment loans
13-average age of trades
26-number of open installment trades

29 is odd because although my utilization is higher than my usual 1%, it's only 3%
27 is odd because i almost never apply for installment loans, although I did apply for one a few months ago
13 is to be expected since my EX AAOA is less than 3 years
26 is odd because the only open installment loan I have on EX is my little SSL which is at 6.2%

The only EX model I know of that has a range of 1 to 999 is their Tele-Risk model (partial table pasted below).
EX has provided a Fico Bankruptcy score as well but, it has a different range [250 to 900] - also pasted below.

Actually, according to this *pdf from Experian, which CGID noted in his earlier post, the Bankruptcy Watch scoring model does indeed have a score range of 1 to 999:

http://www.experian.com/assets/consumer-information/product-sheets/bankruptcy-watch.pdf

Re: Experian "Bankruptcy Watch" scoring model

SouthJamaica — Thu, 06 Jul 2017 19:41:04 GMT

@Anonymous wrote:
Here is some info about BW:

http://www.experian.com/assets/consumer-information/product-sheets/bankruptcy-watch.pdf

It uses some language that suggests it may use trended data in its model.

This article gives a broader view of bankruptcy scoring:

http://www.creditcards.com/credit-card-news/bankruptcy-risk-score-1270.php

It discusses BankuptcyPredict, which may have been the predecessor to BW at Experian.

Good stuff CGID, thanks

Re: Experian "Bankruptcy Watch" scoring model

Thomas_Thumb — Fri, 07 Jul 2017 21:48:27 GMT

@SouthJamaica wrote:
@Thomas_Thumb wrote:
@SouthJamaica wrote:
I just got turned down by a small credit union for a personal line of credit.

The adverse action letter indicated that my credit score of 666 was obtained from Experian "Bankruptcy Watch", where "scores range from a low of 1 to a high of 999".

The score seems strange, since my EX scores on MyFICO ranged from 705 to 827 at that time.

The negative factors cited for the score were:

29-balances on revolving accounts
27-number of inquiries for installment loans
13-average age of trades
26-number of open installment trades

29 is odd because although my utilization is higher than my usual 1%, it's only 3%
27 is odd because i almost never apply for installment loans, although I did apply for one a few months ago
13 is to be expected since my EX AAOA is less than 3 years
26 is odd because the only open installment loan I have on EX is my little SSL which is at 6.2%

The only EX model I know of that has a range of 1 to 999 is their Tele-Risk model (partial table pasted below).
EX has provided a Fico Bankruptcy score as well but, it has a different range [250 to 900] - also pasted below.

Actually, according to this *pdf from Experian, which CGID noted in his earlier post, the Bankruptcy Watch scoring model does indeed have a score range of 1 to 999:

http://www.experian.com/assets/consumer-information/product-sheets/bankruptcy-watch.pdf

Yes, I had seen the score range. I just have not run across a data table from Experian relating bankruptcy other than their Fico bankruptcy 250 to 900.

Pasted below is the scorecard segmentation Equifax uses with their Bankruptcy Navigator Index model (BNI) and TUs BK model segmentation which might be of some interest to some. Here are a couple links to white papers fron EQ and TU as well.

http://communitydata.ca/sites/default/files/TransUnionBankruptcyScorePresentation.PDF

http://www.equifax.com/pdfs/corp/White_Paper-Navigating_Bankruptcy_Risk_1005_6.pdf

Re: Experian "Bankruptcy Watch" scoring model

wanttobeinthe700club — Mon, 10 Jul 2017 00:29:14 GMT

I had to finally go with PenFed because the CU's in my town wouldn't except me with my BK7 from 2011.