- Identifies the predictive characteristics of delinquency in the post-recession period and is enhanced by using mortgage data.
- Predicts delinquency with greater accuracy enabling you to identify more consumers who are more likely to go delinquent within 12 months.
- Approve more customers by accurately and consistently scoring consumer credit files with less information or shorter history.
- The scorecard indicator allows you to identify thin files – consumers who have never had a credit or loan account – making it easy to create strategies around this important consumer segment.
- ERS is designed to work well at the application approval stage – when a risk manager is deciding whether or not to grant credit to a new applicant.
How It Works
Equifax Risk Score is a statistical model that assesses a consumer’s likelihood of 90+ day delinquency within the following 12 months based on recent Canadian data, including mortgage data. ERS uses such credit file characteristics as delinquency, utilization and balances, inquiries, public records, and the ages and types of credit products, to assess delinquency risk. With the help of ERS, a risk manager can evaluate consumer credit files that contain a smaller amount of information with increased accuracy as well as consumers with a short credit history.