A Tier is established for risk-based pricing and the Approved Tier is usually incorporated into the Rate work area to determine the Approved Rate.  For this reason, the Variable Manager's default filter applied on the Tier Matrix lists the available credit scores, which are most often used to determine the risk.

 

The Tier work area includes a matrix and a custom rule editor to assign the Approved Tier.  Once established, the Approved Tier becomes a variable that is available for use in the Loan Amount, Term, Rate, Decision, and Stipulations work areas.

 

Setting Up Tiers

All of the possible tiers are defined by the credit union in the Product Info work area and can be alpha-numeric entries.  For example, "1, 2, 3, 4...", "A+, A, B, C...",  "Platinum, Gold, Silver, Bronze...", etc.

 

Setting up the tiers, tier matrix, and/or tier rules is optional, so those not practicing risk-based pricing can skip these sections.

 

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Page url: https://decision.cudl.com/help/index.html?tier.htm