The FICO® Resilience Index is designed to rank-order consumers with respect to their resilience or sensitivity to an economic downturn.
It answers questions like, “Which ‘680s’ are more likely to go bad when financial stress is exerted on a consumer population?” giving lenders a new tool to use and helping avoid taking large measures that impact more “resilient” consumers unnecessarily.
Why Use FICO Resilience Index Indicator?
FICO® Resilience Index can be used by lenders as another input in credit decisions and account strategies across the credit lifecycle. It can be delivered with a credit file, just like a FICO Score.
It’s scaled from 1 to 99, with higher values representing higher sensitivity to financial stress. It is delivered with up to five reason codes that help lenders better understand the output as well as support adverse action communication, if necessary.
FICO Resilience Index may be used in conjunction with a FICO score or to generate an adjusted FICO Score with factors tuned to lender’s view of economic forecasts.