Application Scorecards are tools that allow organisations to predict the probability that an applicant will behave in a particular way, helping businesses to make effective automated decisions.

The most commonly used application scorecard for credit, predicts the risk of a customer paying or not. This supports you as a business to make automated, accurate and consistent decisions on whether to approve, review or decline applicants.

Application scorecards can also help you predict many other different metrics such as:

  • An applicant’s affordability (ability to pay)
  • Potential future profitability
  • The likelihood to churn (attrition) etc.
  • In the case of a credit risk application scorecard the output is usually a numeric score provided for eachapplicant, with higher scores corresponding to lower levels of estimated risk.

Key benefits

Our application scorecards can enable you to:

  • Automate the application decision processes, reducing the cost of manually underwriting applications.
  • Facilitate the ability of businesses to make accurate, consistent, fact-based decisions.

Flexibly optimise and manage credit risk strategies including:

  • Portfolio approval and bad debt management
  • Risk based pricing – offering preferential terms (e.g. credit limits, interest rates)
  • Cross-selling – appropriately identified customers can be pre-approved for other products that may be of interest to them

How it works

  • Application scorecards are statistical models typically developed using an institution’s historical data for the relevant product, if sufficient such data is available.
  • If relevant historic data is not available, for example if the scorecard is required for a new product, then Experian can provide representative generic data from their extensive data sources.
  • After the data has been extracted and verified it is critical to design a modelling data sample that is representative of the target portfolio and allows the resultant scorecard to meet the business objectives. This is achieved through detailed analysis of the available criteria, portfolio stability and behaviour. The model can then be developed using several methodologies, with linear and logistic regression proving to be the most common. Experian has more than 30 years of experience in successfully developing credit risk models for financial institutions.
  • In addition to your data, captured at the point of application, the most predictive application scorecard developments include credit bureau data which provides a detailed view of credit history. In addition to scorecards, Experian can provide extensive retrospective credit bureau data to support application scorecard developments.

  • Submit

All existing members can visit the Experian bureau membership page to login to their account and avail member services. Members can also access other related information to their account.

Organizations that want to take up Experian Bureau membership can visit this page to process their application.

Thank you for your interest in Experian's Credit Report.
Experian's Credit Report is completely free of cost and there are no restrictions on the number of times you access your report throughout the year. If you are interested in downloading your report, you can visit this page and log in to your Experian Credit Report account.

In case you already have a copy of your Experian Credit Report and would like to raise a dispute regarding correction in information, please click on the link below to download our step-by-step guide on how to raise a dispute.