FAQ: Why Use FICO® Application Risk Models 4.0?

Reduce losses, approve more profitable applicants, and stay compliant

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Pre-developed FICO® Application Risk Models (ARM) provide an immediate, cost-effective means to assess risk for a variety of portfolios and market segments. Now in its fourth release, ARM 4.0 offers even greater predictability and flexibility, providing tens of thousands of dollars of benefits to clients. ARM enables consumer credit grantors to reduce delinquency and chargeoff losses, approve more applicants and increase profitability, streamline operations, cut decision time, and ensure regulatory compliance.

With FICO® Application Risk Models (ARM), you can:

  • Reduce delinquency and charge-off losses: ARM 4.0 models are developed solely for credit origination decisions and deliver better separation of “goods” and “bads” to help lenders cut risk and reduce losses.
  • Approve more applicants and increase profitability: ARM 4.0 delivers improved risk assessment for your needs, including credit grantors that are new to scoring, don’t have the data or resources to develop custom models, or want to expand their portfolio.
  • Ensure regulatory compliance: ARM 4.0 generates intuitive reason codes, so you can respond to regulatory concerns and customer questions.
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