Create a Scoring Model

Create scoring models to use in the calculation of customer credit scores. You can create a different scoring model for each type of credit review that you need. This lets you apply standard and consistent scoring guidelines across your customers and customer accounts.

You assign scoring models to credit case folder templates. When a credit review is initiated and a case folder created, the appropriate template and scoring model is assigned to the case folder for the credit review process.

A scoring model includes the data points and scoring method that are appropriate for a particular credit review. When you create a scoring model, for each data point:

Enter all of the ranges of values that you need to define for a given data point.
Assign a score to each range of values.
Assign a relative weighting factor to the data point, as it relates to all other data points.

During a credit analysis, the scores that you assigned to each data point range of values are used to calculate the score.

Note:

Credit scores are calculated as whole integers, with decimal values .5 or greater rounded up. For example, 70.5 becomes 71, and 70.4 becomes 70.

To create a scoring model:

Navigate to Setup and Maintenance > Manage Credit Scoring Models page.
Click the Plus (+) icon to open the Create Credit Scoring Model page.
In the Name and Description fields, enter the name and description for this scoring model.

You may want to use a name that identifies the type of scoring model, either as it relates to a case folder template or to a subset of your customers.
In the Start Date field, enter the date that you want this scoring model to become active. The default is the system date, but you can change it to a future date.
Use the End Date field to define a limit of active operation for a scoring model. The only valid end date is the current date.

When you create a new case folder or attach a scoring model to a case folder template, you can only select a scoring model that either has no end date or has an end date later than the case folder or case folder template creation date.

Note:
Once you enter an end date and save your work, you can no longer change or remove the end date. This ensures that your credit policies are strictly enforced and that comparisons across scoring models remain meaningful.
In the Currency field, select the scoring model currency.

All data point values used in the calculation of the credit score convert to the scoring model currency.
Use the Convert Null Values to Zero Values option to indicate how the scoring model should treat data points with null values. This option is enabled by default.

Note:
If you disable this option, then the scoring model doesn't calculate a credit score if data points contain null values. In this case, after case folder creation the credit review process stops and the credit analyst must manually enter values for these data points.
In the Data Points section, click the Plus (+) icon to open the Add Data Points window.
In the Add Data Points window, search for and select the data points you want.

Use the Category field to display all data points belonging to a particular category. You can select multiple data points and click the Apply button to assign them to the scoring model. You can then search for data points belonging to a different category and continuing selecting and applying data points to the scoring model.
After adding all of the data points you want, click the OK button to return to the Create Credit Scoring Model page.
In the Data Points section, select the first data point.
In the Weight field, enter the relative weight of this data point.

The weight that you assign indicates the relative importance of the data point in the scoring model.
In the Details section, click the Plus (+) icon to open a row for entering the first range of values and corresponding score for this range.

In the From Range and To Range fields, enter the range of values. You can enter up to 15 characters for each value in the range. Ranges can't have gaps or overlaps.

For numeric data points, the To Range value of the first row must be the same as the From Range value of the second row.

This table shows numeric ranges with no gaps:

Range	From	To	Score
Current Balance	0	1000	10
Current Balance	1000	2000	20
Current Balance	2000	3000	30

For alphanumeric data points, enter only one value per row of ranges. This means both the From Range and To Range values must be the same.

This table shows two range values:

Range	From	To	Score
Range 1	A2B	A2B	10
Range 2	B3B	B3B	5

In the Score Value field, enter a numeric score for this range of values.

Though not required, a common principle for assigning a score is: The higher the score, the lower the credit risk. Your scores then decrease in number as you enter your ranges of values, with the score for the highest level of risk at or near zero (0).
Continue to add rows and enter ranges of values and corresponding scores for each range.

The ranges that you enter should include all possible values for the given data point, from the point of view of establishing credit risk.
Repeat steps 11 to 16 for each data point.
Select the Enabled option to activate the scoring model.

You can later deselect the Enabled option to render the scoring model inactive. You may want to do this instead of entering an end date if your credit requirements change temporarily, but you want the scoring model available for later use.

Note:
If you disable a scoring model you must ensure that it isn't used by an active case folder or case folder template.
Save your work.