August 2017 Timeshare Datashare

Weighted Average FICO Scores Improved in 2016 

Provided by ARDA International Foundation 

Credit risk scores are widely used by major financial service and credit issuing organizations, such as mortgage and auto loan originators and timeshare companies, as one input in making consumer credit decisions. The most widely used credit risk score is the FICO score, which is a three-digit score calculated on a consumer’s credit history to rank that consumer on the likelihood that their credit obligations will be paid as expected.

According to the recently released 2017 Financial Performance report, participants of the survey were asked to indicate whether FICO scoring is a component of their underwriting criteria. A majority of the respondents, 82.4 percent, reported that they utilize FICO scoring, which is consistent with 2015

Seventeen survey respondents reported a weighted average FICO score between 650 and 749 on loans held in their receivables portfolios at calendar year end 2016. Overall, weighted average FICO scores increased from 2015 to 2016 by two points from 706 to 708.

  201708 Datashare 

Source: Financial Performance 2017: A Survey of Timeshare & Vacation Ownership Companies, prepared by Deloitte for the AIF