Default Algorithm | Jumpstart

Jumpstart Default Algorithm

Introduction

Today, FICO scores are ubiquitous. Hospitals use FICO scores before making admission decisions, retailers use FICO to determine where to open new stores, casino operators use FICO to find the most profitable customers, and health insurers use FICO models to see who is likely to take prescribed medications. But that’s not to say that using FICO scores to evaluate all aspects of a consumer’s creditworthiness actually makes all that much sense.

In particular, the greatest delta lies with the evaluation of energy payment defaults. In the event of a consumer debt event, utility payments (such as energy and water), along with food and housing, are typically paid first. FICO scores were developed to calculate credit risk, not electricity payment risk -- the characteristic default behavior is fundamentally different. The energy industry deserves its own model. Jumpstart has thus developed a deep-learning credit evaluation model, specific for the energy industry.

The variables necessary for Jumpstart's Default Algorithm are as follows:

  • Loan Amount: Total loan amount
  • Interest Rate: Interest Rate on the loan
  • Installment Rate: Monthly payment
  • Employment Length: Borrwer employment length in years
  • Annual Income: Borrower annual income
  • Debt-to-Income: Borrower’s total monthly debt payments (excluding mortgage and the requested loan), divided by the borrower’s monthly income
  • Delinquency in 2 years: Number of 30+ day delinquencies in the borrower's credit file for the past 2 years
  • Derogatory Public Records: Number of derogatory public records
  • Inquiry in 6 months: Number of inquiries in past 6 months (excluding auto and mortgage inquiries)
  • Open Accounts: Number of open credit lines in the borrower's credit file
  • Accounts Opened in the last 12 months: Number of accounts opened in past 12 months
  • Chargeoffs In 12 Months: Number of charge-offs within 12 months
  • Revolving Balance: Total credit revolving balance
  • Revolving Line Utilization Rate: The amount of credit the borrower is using relative to all available revolving credit
  • Bankcard Utilization: Ratio of total current balance to high credit/credit limit for all bankcard accounts
  • Zip Code
  • Term: Loan/lease term (in months)
  • Home Ownership: Rent, own, mortgage, or other
  • Total Collection Amounts: Total collection amounts ever owed
  • Total Balance: Total current balance of all accounts
  • Total Open to Buy: Total open-to-buy on revolving bankcards
  • Total Credit Balance: Total credit balance (excluding mortgage)
  • Months Since Oldest Bank Installment Account Opened: Months since oldest bank installment account opened
  • Months Since Oldest Bank Revolving Account Opened: Months since oldest revolving account opened
  • Months Since Recent Bank Revolving Account Opened: Months since most recent revolving account opened
  • Months Since Recent Account Opened: Months since most recent account opened
  • Months Since Recent Bankcard Account Opened: Months since most recent bankcard account opened
  • Months Since Recent Inquiry: Months since most recent inquiry
  • Number of Active Bankcard Accounts: Number of currently active bankcard accounts
  • Number of Mortgage Accounts: Number of mortgage accounts
  • Number of Accounts 30 Days Past Due: Number of accounts currently 30 days past due (updated in past 2 months)
  • Number of Accounts 120 Days Past Due: Number of accounts currently 120 days past due (updated in past 2 months)
  • Number of Accounts Ever 120 Days Past Due: Number of accounts ever 120 or more days past due

Email Address

this will let us know where to send the test results

Data (.csv only)

format the data like in the image above,
and save the document in a .csv format