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Experian "Bankruptcy Watch" scoring model

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SouthJamaica
Mega Contributor

Experian "Bankruptcy Watch" scoring model

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%

 

 


Total revolving limits 650200 (530700 reporting) FICO 8: EQ 706 TU 714 EX 715

Message 1 of 11
10 REPLIES 10
Anonymous
Not applicable

Re: Experian "Bankruptcy Watch" scoring model

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.

 

 

Message 2 of 11
Anonymous
Not applicable

Re: Experian "Bankruptcy Watch" scoring model

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.

Message 3 of 11
Anonymous
Not applicable

Re: Experian "Bankruptcy Watch" scoring model

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.

Message 4 of 11
CreditInspired
Community Leader
Super Contributor

Re: Experian "Bankruptcy Watch" scoring model

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.

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Message 5 of 11
Thomas_Thumb
Senior Contributor

Re: Experian "Bankruptcy Watch" scoring model


@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.

 

EX Tele-Risk graph.jpg

EX Tele-Risk model.jpg

 

EX bankruptcy 1.jpg

EX Bankruptcy 2.jpg

EX bankruptcy 3.jpg

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 6 of 11
SouthJamaica
Mega Contributor

Re: Experian "Bankruptcy Watch" scoring model


@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.

 

EX Tele-Risk graph.jpg

EX Tele-Risk model.jpg

 

EX bankruptcy 1.jpg

EX Bankruptcy 2.jpg

EX bankruptcy 3.jpg


The telecommunications score model?

 

https://www.thefreelibrary.com/Experian+Introduces+the+Tele-Risk+Model%3b+New+Tool+Increases...-a068...

 

 


Total revolving limits 650200 (530700 reporting) FICO 8: EQ 706 TU 714 EX 715

Message 7 of 11
SouthJamaica
Mega Contributor

Re: Experian "Bankruptcy Watch" scoring model


@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.

 

EX Tele-Risk graph.jpg

EX Tele-Risk model.jpg

 

EX bankruptcy 1.jpg

EX Bankruptcy 2.jpg

EX bankruptcy 3.jpg


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


Total revolving limits 650200 (530700 reporting) FICO 8: EQ 706 TU 714 EX 715

Message 8 of 11
SouthJamaica
Mega Contributor

Re: Experian "Bankruptcy Watch" scoring model


@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 Smiley Happy


Total revolving limits 650200 (530700 reporting) FICO 8: EQ 706 TU 714 EX 715

Message 9 of 11
Thomas_Thumb
Senior Contributor

Re: Experian "Bankruptcy Watch" scoring model


@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

 

Equifax Bankruptcy scorecards.jpg

 

TU bankruptcy segmentation.jpg

 

 

 

 

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 10 of 11
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