Equifax and FICO have launched a new risk score to identify which UK consumers can handle more credit.
FICO, a provider of analytics and decision management technology, has teamed up with Equifax to create a new tool called FICO Credit Capacity Index, which is built on Equifax’s risk score, Risk Navigator 4.
The results of initial analysis have shown that UK card issuers could safely extend more credit to 15% more consumers on average. The new solution from the Equifax-FICO alliance gives lenders an effective way to assess a consumer’s ability to manage additional credit. It will allow issuers to take a forward-looking view of credit risk, enabling them to grow their customer portfolios without extending credit to consumers who will be unable to manage the additional debt.