Chapter 14: Data & Analytics
IN THIS LESSON
What is a score validation?
The most common objective of a Custom Validation is to assess the effectiveness of various risk scores in discriminating future delinquencies, charge-offs and/or bankruptcies from non-delinquent/bankrupt accounts for a client’s portfolio. The validation results will then assist clients in determining score-cut strategies.
Clients should consider revalidating current models in the following circumstances:
Anticipating using a model - validate to select best model, or
Currently using a model - to revalidate its performance, or
Currently using a model – validate when a new release is developed
How often should score validations occur?
The ideal cadence is every 24 months, as a score predicts the likelihood of delinquency in 24 months. However, it’s up to each individual customer.
Who completes a score validation for my customer?
The Equifax Data & Analytics team will complete the score validation once the solution is sold to the customer.
Click here to view more score validation information.