MINNEAPOLIS – FICO, formerly known as Fair Isaac & Co., said yesterday it has joined with credit bureau Equifax to offer a new analytic tool to better assess consumer credit risk.
Developed by FICO and leveraging Equifax credit data, the Credit Capacity Index is the first forward-looking risk management tool that ranks by order consumers based on their ability to take on future debt.
FICO optimized Credit Capacity Index to be used in tandem with BEACON credit scores, which rank order consumers’ repayment risk based on current credit profile information. Both scores are built on Equifax credit data and can be leveraged by lenders as part of other risk management strategies when making credit decisions. Used together, Credit Capacity Index and BEACON can help lenders differentiate consumers who present the same repayment risk on their current obligations but vary in their capacity to assume new debt or incremental credit balances.
