Clarity Services has developed an easy way for auto lenders to distinguish between creditworthy and higher-risk subprime consumers. Clarity understands that not all subprime auto consumers are created equal, so we created a unique dual score matrix. By combining or “overlaying” our proprietary auto risk score with the FICO® Auto score, lenders can more precisely assess risk and structure deals based on an subprime auto applicant’s risk level, not just a number on a credit report.
How Clear Auto Risk Score Works
- Clarity’s Clear Auto Risk Score indicates an applicant’s activity in the subprime market, is based on overall stability and other attributes, and can indicate intent (or not) to repay.
- Auto-specific FICO® scores are traditional credit scores based on an applicant’s credit history in the traditional automotive finance market.
- The matrix is the result of the combined scores and clearly shows a range of risk levels. A lender can more easily distinguish the creditworthy subprime auto consumers from higher-risk applicants and can develop a company-specific approval cutoff based on their underwriting criteria.
- Reduce losses from early payment default.
- Increase look-to-book rates.
- Increase revenue with risk-based pricing.
- Assess overall stability, an indication of intent to repay.
Contact us to learn more.