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Using Credit Scores to Drive Policy

July 08, 2011 by John Krickus

How do you use scores in setting a credit or risk policy? The answer actually varies widely, but there are some general rules. What is your companies risk tolerance? If margins are high, approvals are usually high also. In this situation, only the highest risk and lowest scored accounts should be rejected or reviewed. For a lower margin business, the opposite is true. A higher threshold is set for approval and many more accounts are reviewed or declined.

You can deploy credit scores to facilitate a custom risk policy and Experian provides capabilities in Business IQ to set a risk policy that fits your companies approach, so one size does not fit all.

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