Experian Business Reports - Portfolio risk scores Retail credit card
Small Business Credit ShareSM
Portfolio risk scores Retail credit card
Retail credit card performance table
Small Business Credit ShareSM portfolio risk scores harness the power of Experian s commercial credit consortium and advanced analytics to provide Experian s most predictive scores for financial portfolio management.
The retail credit card portfolio risk score predicts the likelihood of a business becoming seriously delinquent on a retail credit card account within the next 12 months. Seriously delinquent is defined as one or more incidences of payment 90 days beyond terms or two or more incidences of payment 60 days beyond terms on retail credit card accounts.
The following performance table is designed to help you set the score ranges that provide optimal results based on your company s credit policy and risk tolerance as you use the Small Business Credit Share portfolio risk scores.
The performance table represents all retail card inquiry performance.
How to read the table
The highlighted row has a cumulative score range of 11 to 100 and a score range of 11 to 15. In the following instructions on how to read the table, we use the highlighted row as an example.
- At the score of 11 and above, 90 percent of the accounts were approved
- The delinquency rate is equivalent to 1.33 percent of the entire portfolio
- The 10 percent of accounts below a score of 11 represent 70.7 percent of all bad accounts in the population
- At a cutoff of 11, there are 74 good accounts for every bad account
Definition of terms
Approval rate: Percentage of applicants approved if all businesses scoring at and above the low score were accepted
Bad account: A retail card account that goes more than 90 days beyond terms at least once or 60 days beyond terms at least twice within a 12-month period
Bad rate: Percentage of bad accounts either down to a score cutoff (cumulative) or for a score range
Odds of goods to one bad: Number of good accounts for every one bad account, either cumulative or for a score range
Percentage of bads excluded: Percentage of bad accounts excluded below the low score for a given score range
Score range: Range of scores for each interval