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Experian Credit Information Company launched a new consumer score (Delphi score), which provides a summarised indication of an individual's creditworthiness.
It considers various aspects of evaluation including existing outstanding, payment track records and past defaults, said a press release issued by Experian.
Statistically derived, the score measures the propensity of an individual to go delinquent within a 12-month time frame. The Delphi score range falls between 300 and 900; higher the score, higher the creditworthiness of the individual.
Experian has also introduced a new scorecard for first-to-credit customers or individuals who have never had a loan in the past. This scorecard has six grades between one to six: one representing high risk and six representing low risk.
Credit scores provide the end-user with a summary of the overall credit behaviour of an individual, using historical data and statistical tools.
Scores act as predictive tools for banks, financial institutions, telecom and insurance players thereby ensuring better customer management. With credit scoring, sourcing new customers is made more efficient by reducing the amount of manual checks, the release said.
