Círculo de Crédito, the fastest-growing credit bureau in Mexico, can provide credit scores on nearly twice as many people, thanks to its adoption of an innovative score from analytic software firm FICO. Since it has been using the FICO Extended Score to score people with little or no credit history, Círculo de Crédito has increased the percentage of people who can be scored from 45% to around 85%.
Some 10 million Mexicans lack enough credit history to calculate a risk score, which makes it harder to get approval for a loan or credit card. FICO worked with Círculo de Crédito to develop a customized score based on the high correlation of an individual’s risk with the risk level of people who live at the same house. With FICO Extended Score at Círculo de Crédito, Mexican financial institutions can use the history of an individual’s family members to assess their credit risk.
Círculo de Crédito has a 45% market share in Mexico, with more than 2,600 clients in different sectors, including financial institutions, retail, microfinance, telecommunications and government institutions. The credit bureau offers customer data, value-added products such as scores, and customized solutions.
FICO powers decisions that help people and businesses around the world prosper. Founded in 1956 and based in Silicon Valley, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 170 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, telecommunications, health care, retail and many other industries.
Using FICO solutions, businesses in more than 100 countries do everything from protecting 2.6 billion payment cards from fraud, to helping people get credit, to ensuring that millions of airplanes and rental cars are in the right place at the right time.