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The Tier Custom Rules tab is a custom rule editor. Rules created for each tier determine whether the application qualifies for that tier (it qualifies if the result is True) or if it does not (the tier will drop by one risk level if the rule is False).
When a Tier Matrix is used, the initial Tier is assigned based on the values of each application variable in the matrix. That Tier is then verified as valid by the rules set up for it in the custom rule editor.
Example
Example Credit Union has used the Applicant's Fair Isaac Auto V3 Score to set up the Tier Matrix below:
Low |
High |
Tier |
|---|---|---|
740 |
900 |
1 |
660 |
739 |
2 |
600 |
659 |
3 |
250 |
599 |
4 |
When the applicant scores 700 he is assigned Tier 2. The credit union adds additional criteria to each tier using custom rules to ensure that the credit depth (length of credit and number of satisfactory trades) is sufficient for the Tier being assigned. The custom rule for Tier 2 is below.
Rule |
Description |
Expression |
Reason |
|---|---|---|---|
Tier 2 |
Must have at least 3 satisfactory trades and 36 months credit to qualify for Tier 2. |
Applicant Age of Oldest Trade-Excluding Authorized User Trades (Mos) Greater Than or Equals 36 |
Limited Credit |
So if this applicant has at least 36 months of credit history and at least 3 satisfactory trades, the rule will be True. He will still qualify for Tier 2 and no changes are made.
But if the applicant fails to meet the criteria for either statement within the rule, the result will be False and the risk level will be increased by one Tier. Tier 3 will be assigned and then the rule(s) for Tier 3, if any will be evaluated to see if the applicant qualifies for Tier 3.
For additional information refer to Custom Rule Editors.
Page url: https://decision.cudl.com/help/index.html?tier_rule_editor.htm
