Underwriting policy
Adjust thresholds and watch every recommendation in the queue update. Trade-offs are measured on the model's held-out test set.
Effect on the queue
36 applications, current vs default policy
- Approve16—
- Refer17—
- Decline3—
Risk at this cut-off
Approving scores ≥ 660 on 827 held-out customers
Approval rate
53%
Default rate
7.3%
Without a model, approving everyone would mean a 25% default rate.
Cut-off trade-off
Each row: approve everyone at or above this score. Hover to compare.
| Score cut-off | Approval rate | Default rate among approved | |
|---|---|---|---|
| 540 | 95% | 20.3% | |
| 560 | 91% | 18.7% | |
| 580 | 86% | 17.5% | |
| 600 | 79% | 15.9% | |
| 620 | 71% | 12.9% | |
| 640 | 60% | 9.1% | |
| 660 | 53% | 7.3% | Current |
| 680 | 42% | 6.3% | |
| 700 | 32% | 4.9% | |
| 720 | 26% | 4.1% | |
| 740 | 20% | 2.4% | |
| 760 | 15% | 0.0% | |
| 780 | 9% | 0.0% |