FICO® Credit Capacity Index™

• Extend credit safely
  The FICO® Credit Capacity Index™ provides a more effective means of predicting a consumer's ability to handle additional debt than traditional income-based measures. It is based solely on verifiable credit bureau data to provide a consistent, objective, fair and accurate measure of the risk implications of changes in consumer indebtedness before a consumer incurs additional debt. It therefore gives lenders time to take action to avoid loss exposure.
• Gain market share with less risk
  The Credit Capacity Index enables you to move quickly to target current accountholders and potential customers who have the greatest likelihood of safely managing additional debt.
• Improve portfolio quality and robustness under changing economic conditions
  Using the Credit Capacity Index helps you reallocate your credit exposure toward consumers that have a greater capacity to safely manage additional debt, and lessen exposure away from consumers more likely to end up in delinquency or default after incurring incremental debt.

• Rank-orders accounts by general risk
  While the Credit Capacity Index is derived from the same credit bureau data as the FICO® score, it provides an entirely different view of consumer risk: forecasting the likelihood a consumer will repay additional debt from either new credit obligations or extended existing account debt.
• Uses advanced, innovative analytics
  Future-Action Impact Modeling is FICO's patent pending technology that extracts new value from reliable data sources, such as credit bureau information. This innovative approach projects consumer sensitivity to new behaviors not currently on the credit report by inferring tolerance for incremental future debt.
• Includes reason codes to improve customer service
  Credit Capacity Index scores are accompanied by reason codes, which can be used with FICO score reasons to explain credit decisions and meet documentation and disclosure regulations.
• Useful for cross-lifecycle decisions
  Insight into credit capacity along with a baseline risk measure enables improved targeting of promotional offers, initial line assignments and cross-sales offers.

Available for Testing

FICO Credit Capacity Index is available for validation testing. Simulated benefits adding Credit Capacity Index to FICO® scores and a commercially available income measure may yield users a benefit of $1-10 per account or up to 200% ROI.

FICO is currently working with many lenders to evaluate how Credit Capacity Index can add value to their existing tools to refine strategies and boost portfolio and account performance. Such validations have demonstrated that Credit Capacity Index can better identify consumers who can safely manage additional revolving debt. More validations are planned to review the product's ability to augment installment lending decisions.

Please contact cbhelpline@fico.com or call +1 800 777 2066 for more information on testing and deployment options.