Methods and systems for score consistency

• US 8,055,579 B2
• Filed: 03/05/2008
• Issued: 11/08/2011
• Est. Priority Date: 02/06/2008
• Status: Active Grant

• Current Assignee: VantageScore Solutions LLC (Equifax, Inc.)
• Original Assignee: VantageScore Solutions LLC (Equifax, Inc.)
• Inventors: Pacheco, Andrada, Davies, Sarah, Wang, Duan
• Primary Examiner(s): Kramer; James
• Assistant Examiner(s): Fu; Hao
• Application Number:
  US12/042,808
• Publication Number:
  US 20090198611A1
• Time in Patent Office: 1,343 Days
• Field of Search: 705/35, 705/38
• US Class Current: 705/38
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

Provided are methods and systems for determining score consistency.

Claims

1. A computer-implemented method for determining score consistency, comprising:

a. generating by a computer a first score for each of a plurality of entities using a first scoring algorithm, wherein the first score is predictive of credit risk;

b. generating by a computer a second score for each of the plurality of entities using the same or a different scoring algorithm, wherein the second score is predictive of credit risk;

c. ranking by a computer the plurality of entities by the first score, resulting in a first ranked list;

d. ranking by a computer the plurality of entities by the second score, resulting in a second ranked list;

e. assigning, based on the first ranked list, each of the plurality of entities to one of a first plurality of risk groups;

f. assigning, based on the second ranked list, each of the plurality of entities to one of a second plurality of risk groups, wherein the second plurality of risk groups corresponds to the first plurality of risk groups;

g. determining by a computer, in each of the corresponding risk groups, a number of entities assigned to the same corresponding risk group across the first and second ranked lists;

h. determining by a computer a total number of entities assigned to the same corresponding risk groups across the first and second ranked lists by adding the numbers determined in step g;

i. dividing the total number of entities assigned to the same corresponding risk groups across the first and second ranked lists by the number of the plurality of entities, resulting in a first score consistency value; and

j. outputting the first score consistency value.

2. The method of claim 1, wherein the plurality of entities is a plurality of consumers.

3. The method of claim 1, wherein each of the assigning steps further comprises:

dividing by a computer the first ranked list into a first portion and a second portion, wherein the first portion represents a first risk group and the second portion represents a second risk group of the first plurality of risk groups; and

dividing by a computer the second ranked list into a first portion and a second portion, wherein the first portion represents the first risk group and the second portion represents the second risk group of the second plurality of risk groups.

4. The method of claim 3, further comprising:

identifying by a computer entities located in both the first portion of the first ranked list and the first portion of the second ranked list; and

identifying by a computer entities located in both the second portion of the first ranked list and the second portion of the second ranked list.

5. The method of claim 1, wherein the outputting step comprises displaying the first score consistency value on a display device.

6. The method of claim 1, further comprising repeating by a computer steps a-j using one or more scoring algorithms to generate a second scoring consistency value.

7. The method of claim 6, further comprising, comparing by a computer the first and second scoring consistency values to determine which scoring algorithm provides more consistent scores.

8. The method of claim 1, wherein the first score and the second score are obtained from a first credit reporting company.

9. The method of claim 1, wherein the first score is obtained from a first credit reporting company and the second score is obtained from a second credit reporting company.

10. A computer-implemented method for determining score consistency, comprising:

a. generating by a computer a first score for each of a plurality of entities using a first scoring algorithm, wherein the first score is predictive of credit risk;

b. generating by a computer a second score for each of the plurality of entities using a second scoring algorithm, wherein the second score is predictive of credit risk;

c. ranking by a computer the plurality of entities by the first score, resulting in a first ranked list;

d. ranking by a computer the plurality of entities by the second score, resulting in a second ranked list;

e. assigning, based on the first ranked list, each of the plurality of entities to one of a first plurality of risk groups;

f. assigning, based on the second ranked list, each of the plurality of entities to one of a second plurality of risk groups, wherein the second plurality of risk groups corresponds to the first plurality of risk groups;

g. determining by a computer, in each of the corresponding risk groups, a number of entities assigned to the same corresponding risk group across the first and second ranked lists;

h. determining by a computer a total number of entities assigned to the same corresponding risk groups across the first and second ranked lists by adding the numbers determined in step g;

i. dividing the total number of entities assigned to the same corresponding risk groups across the first and second ranked lists by the number of the plurality of entities, resulting in a score consistency value; and

j. outputting by a computer the score consistency value.

11. The method of claim 10, wherein the plurality of entities is a plurality of consumers.

12. The method of claim 10, wherein each of the assigning steps further comprises:

dividing by a computer the first ranked list into a first portion and a second portion, wherein the first portion represents a first risk group and the second portion represents a second risk group of the first plurality of risk groups; and

dividing by a computer the second ranked list into a first portion and a second portion, wherein the first portion represents the first risk group and the second portion represents the second risk group of the second plurality of risk groups.

13. The method of claim 12, further comprising:

identifying by a computer entities located in both the first portion of the first ranked list and the first portion of the second ranked list; and

identifying by a computer entities located in both the second portion of the first ranked list and the second portion of the second ranked list.

14. The method of claim 10, wherein the outputting step comprises displaying the score consistency value on a display device.

15. The method of claim 10, wherein the first score and the second score are obtained from a first credit reporting company.

16. The method of claim 10, wherein the first score is obtained from a first credit reporting company and the second score is obtained from a second credit reporting company.

17. A system for determining score consistency, comprising:

a memory configured to store scoring consistency data; and

a processor, configured to perform steps comprising

a. generating a first score for each of a plurality of entities using a first scoring algorithm, wherein the first score is predictive of credit risk;

b. generating a second score for each of the plurality of entities using the same or a different scoring algorithm, wherein the second score is predictive of credit risk;

c. ranking the plurality of entities by the first score, resulting in a first ranked list;

d. ranking the plurality of entities by the second score, resulting in a second ranked list;

e. assigning, based on the first ranked list, each of the plurality of entities to one of a first plurality of risk groups;

f. assigning, based on the second ranked list, each of the plurality of entities to one of a second plurality of risk groups, wherein the second plurality of risk groups corresponds to the first plurality of risk groups;

g. determining, in each of the corresponding risk groups, a number of entities assigned to the same corresponding risk group across the first and second ranked lists;

h. determining a total number of entities assigned to the same corresponding risk groups across the first and second ranked lists by adding the numbers determined in step g;

i. dividing the total number of entities assigned to the same corresponding risk groups across the first and second ranked lists by the number of the plurality of entities, resulting in a first score consistency value; and

j. outputting the first score consistency value.

18. The system of claim 17, further comprising repeating steps a-j using one or more scoring algorithm to generate a second scoring consistency value.

19. A non-transitory computer readable medium having computer executable instructions embodied thereon for determining score consistency, the instructions comprising:

a. generating a first score for each of a plurality of entities using a first scoring algorithm, wherein the first score is predictive of credit risk;

b. generating a second score for each of the plurality of entities using the same or a different scoring algorithm, wherein the second score is predictive of credit risk;

c. ranking the plurality of entities by the first score, resulting in a first ranked list;

d. ranking the plurality of entities by the second score, resulting in a second ranked list;

e. assigning, based on the first ranked list, each of the plurality of entities to one of a first plurality of risk groups;

f. assigning, based on the second ranked list, each of the plurality of entities to one of a second plurality of risk groups, wherein the second plurality of risk groups corresponds to the first plurality of risk groups;

g. determining, in each of the corresponding risk groups, a number of entities assigned to the same corresponding risk group across the first and second ranked lists;

h. determining a total number of entities assigned to the same corresponding risk groups across the first and second ranked lists by adding the numbers determined in step g;

i. dividing the total number of entities assigned to the same corresponding risk groups across the first and second ranked lists by the number of the plurality of entities, resulting in a first score consistency value; and

j. outputting the first score consistency value.

20. A computer-implemented method for determining score consistency, comprising:

a. generating by a computer a first score for each of a plurality of entities using a first scoring algorithm, wherein the first score is predictive of credit risk;

b. generating by a computer a second score for each of the plurality of entities using the same or a different scoring algorithm, wherein the second score is predictive of credit risk;

c. generating by a computer a third score for each of the plurality of entities using the same or a different scoring algorithm, wherein the third score is predictive of credit risk;

d. ranking by a computer the plurality of entities by the first score, resulting in a first ranked list;

e. ranking by a computer the plurality of entities by the second score, resulting in a second ranked list;

f. ranking by a computer the plurality of entities by the third score, resulting in a third ranked list;

g. assigning, based on the first ranked list, each of the plurality of entities to one of a first plurality of risk groups;

h. assigning, based on the second ranked list, each of the plurality of entities to one of a second plurality of risk groups, wherein the second plurality of risk groups corresponds to the first plurality of risk groups;

i. assigning, based on the third ranked list, each of the plurality of entities to one of a third plurality of risk groups, wherein the third plurality of risk groups corresponds to the first and second pluralities of risk groups;

j. determining by a computer, in each of the corresponding risk groups, a number of entities assigned to the same corresponding risk group across the first, second, and third ranked lists;

k. determining by a computer a total number of entities assigned to the same corresponding risk groups across the first, second, and third ranked lists by adding the numbers determined in step j;

l. dividing the total number of entities assigned to the same corresponding risk groups across the first, second, and third ranked lists by the number of the plurality of entities, resulting in a first score consistency value; and

m. outputting by a computer the first score consistency value.

21. A computer-implemented method for determining score consistency, comprising:

a. generating by a computer a first score for each of a plurality of entities using a first scoring algorithm, wherein the first score reflects credit worthiness;

b. generating by a computer a second score for each of the plurality of entities using a second scoring algorithm, wherein the second score reflects credit worthiness;

c. generating by a computer a third score for each of the plurality of entities using a third scoring algorithm, wherein the third score reflects credit worthiness;

d. ranking by a computer the plurality of entities by the first score, resulting in a first ranked list;

e. ranking by a computer the plurality of entities by the second score, resulting in a second ranked list;

f. ranking by a computer the plurality of entities by the third score, resulting in a third ranked list;

g. assigning, based on the first ranked list, each of the plurality of entities to one of a first plurality of risk groups;

h. assigning, based on the second ranked list, each of the plurality of entities to one of a second plurality of risk groups, wherein the second plurality of risk groups corresponds to the first plurality of risk groups;

i. assigning, based on the third ranked list, each of the plurality of entities to one of a third plurality of risk groups, wherein the third plurality of risk groups corresponds to the first and second pluralities of risk groups;

j. determining by a computer, in each of the corresponding risk groups, a number of entities assigned to the same corresponding risk group across the first, second, and third ranked lists;

k. determining by a computer a total number of entities assigned to the same corresponding risk groups across the first, second, and third ranked lists by adding the numbers determined in step j;

l. dividing the total number of entities assigned to the same corresponding risk groups across the first, second, and third ranked lists by the number of the plurality of entities, resulting in a score consistency value; and

m. outputting by a computer the score consistency value.

22. A system for determining score consistency, comprising:

a memory configured to store scoring consistency data; and

a processor, configured to perform steps comprising

a. generating a first score for each of a plurality of entities using a first scoring algorithm, wherein the first score is predictive of credit risk;

b. generating a second score for each of the plurality of entities using the same or a different scoring algorithm, wherein the second score is predictive of credit risk;

c. generating a third score for each of the plurality of entities using the same or a different scoring algorithm, wherein the third score is predictive of credit risk;

d. ranking the plurality of entities by the first score, resulting in a first ranked list;

e. ranking the plurality of entities by the second score, resulting in a second ranked list;

f. ranking the plurality of entities by the third score, resulting in a third ranked list;

g. assigning, based on the first ranked list, each of the plurality of entities to one of a first plurality of risk groups;

h. assigning, based on the second ranked list, each of the plurality of entities to one of a second plurality of risk groups, wherein the second plurality of risk groups corresponds to the first plurality of risk groups;

i. assigning, based on the third ranked list, each of the plurality of entities to one of a third plurality of risk groups, wherein the third plurality of risk groups corresponds to the first and second pluralities of risk groups;

j. determining, in each of the corresponding risk groups, a number of entities assigned to the same corresponding risk group across the first, second, and third ranked lists;

k. determining a total number of entities assigned to the same corresponding risk groups across the first, second, and third ranked lists by adding the numbers determined in step j;

l. dividing the total number of entities assigned to the same corresponding risk groups across the first, second, and third ranked lists by the number of the plurality of entities, resulting in a first score consistency value; and

m. outputting the first score consistency value.

23. A non-transitory computer readable medium having computer executable instructions embodied thereon for determining score consistency, the instructions comprising:

a. generating a first score for each of a plurality of entities using a first scoring algorithm, wherein the first score is predictive of credit risk;

b. generating a second score for each of the plurality of entities using the same or a different scoring algorithm, wherein the second score is predictive of credit risk;

c. generating a third score for each of the plurality of entities using the same or a different scoring algorithm, wherein the third score is predictive of credit risk;

d. ranking the plurality of entities by the first score, resulting in a first ranked list;

e. ranking the plurality of entities by the second score, resulting in a second ranked list;

f. ranking the plurality of entities by the third score, resulting in a third ranked list;

g. assigning, based on the first ranked list, each of the plurality of entities to one of a first plurality of risk groups;

h. assigning, based on the second ranked list, each of the plurality of entities to one of a second plurality of risk groups, wherein the second plurality of risk groups corresponds to the first plurality of risk groups;

i. assigning, based on the third ranked list, each of the plurality of entities to one of a third plurality of risk groups, wherein the third plurality of risk groups corresponds to the first and second pluralities of risk groups;

j. determining, in each of the corresponding risk groups, a number of entities assigned to the same corresponding risk group across the first, second, and third ranked lists;

k. determining a total number of entities assigned to the same corresponding risk groups across the first, second, and third ranked lists by adding the numbers determined in step j;

l. dividing the total number of entities assigned to the same corresponding risk groups across the first, second, and third ranked lists by the number of the plurality of entities, resulting in a first score consistency value; and

m. outputting the first score consistency value.