Intelliscore PlusSM frequently asked questions

Intelliscore PlusSM frequently asked questions

Intelliscore Plus overview and model development

General information

What is Intelliscore Plus?

Intelliscore PlusSMisExperian'snewestbusinessscore--thebestbusinessscoring modelwe'vedevelopedtodate.Takingcuesfromtheinformationenteredonan inquiry,IntelliscorePlusreturnseitheracommercialscoreorablendedcommercial/ consumerscore.Bothscoresarehighlypredictive,butforsmallbusinesses,blended datahasproventhemostpredictiveintheindustry.Note that permissible purpose is

required to access consumer information.

TheIntelliscorePlusmodelusessophisticatedstatisticaltechniquestopredictthe likelihoodthatabusiness'spaymentperformancewillbecomeseriouslydelinquent, definedas90-plusdaysbeyondtermswithinthenext12monthsorthatthebusiness willgobankrupt.

What enhancements does Intelliscore Plus provide versus the old Commercial IntelliscoreSM and Small Business IntelliscoreSM?

IntelliscorePlusbringsseveralkeyenhancements:

? Dramaticperformanceimprovementsinpredictivepower.

? Thescoreisnowaneasy-to-usepercentilethatdirectlycorrelatestorisk. Example:Ascoreof30meansabusinessscoresbetterthan29percentof otherbusinesses.

? Single-screeninquiryforbothcommercialandblendedscores:Thereisnoneed tochoosebetweenacommercialorblendeddatamodel;bothareaccessible throughIntelliscorePlus.Thescorereturnedisbasedoninquiryinformation.For instance,ifonlycommercialdataisentered,thenonlyacommercial-basedscore will be returned.

? Scorefactorsidentifythefourmainreasonsascorewasloweredratherthan amixofpositiveandnegativefactorsaffectingthescore.

? Uptofourownerscanbeincorporatedintoablendedscore.Previously,only two could be incorporated.

? Largecompanieswillbescoredthroughalargebusinesscommercialmodel segment.Thishappensbehindthesceneswithnoextrastepsonyourpart, andtheresultisimprovedscoringoflargebusinesses.

Why was a new model built?

Itisalwaysgoodpracticetoupdatescoringmodelseverytwotothreeyearsto ensuretheycontinuetoperformaccurately.The2007launchofExperian'simproved commercial database, BizSource,SMbroughtsignificantincreaseinthedatafeeding thescoringmodels.Becauseofthechangingeconomicenvironment,itwas

important to implement a model revision.

What data sources are used in Intelliscore Plus? How are large companies scored?

What is blended data?

Access and report output

What are the various outputs that may result when pulling a score in Intelliscore Plus?

What is changing in the Score Factor section of the Intelliscore Plus report?

IntelliscorePluscombinesinformationfromsourcesincludingcompaniesthat reportactualtradepaymentexperiences,publicrecordsandcollectionsrecords. Morethan7millionrecordswereusedtobuildtheIntelliscorePlusmodel,and morethan800commercialandconsumerdataelementswereutilizedtodevelop thescoringalgorithms.

TherearenuancestoscoringlargecompaniesthatIntelliscorePlusaddressesbetter thanpreviousscoringmodels.Forinstance,largecompaniesoftenhavehighdays beyondtermsbecausetheycansettheirowntermsforpaymentratherthanfollowing industrynorms.InIntelliscorePlus,largecompanies(businesseswithmorethan 1,000employeesandmorethan50tradelines)arescoredusingspecialalgorithmsand criteria.Theresultisstillascorethatbetterreflectslargebusinessrisk.

Blendeddataiscombinedbusinessownercreditdataandcompanycreditdata. Somesmallbusinesseshavelimitedbusinesscreditinformationonfile,makingit hardtodecidewhomtoextendcredittoandwhattermstoset.AnExperianstudy showedthatconsumerscoresalonearenotoptimalinpredictingbusinessrisk. Blendeddatasolvesthatproblembycombiningtwosourcesofcreditdata--owner andbusiness.Validationshaveshownthatblendedcreditdataisthemostpredictive ofsmall-businessrisk.

Intelliscore Plus can provide consumer information for up to four owners or proprietorswithanyexistingcommercialdatatoreturnablendedscore.Beyond our standard Intelliscore Plus performance table, Experian?hasdevelopedadditional granularscorescalesandanoddschartspecificallyforblendeddatausewithin IntelliscorePlus.ContactyourExperiansalesrepresentativeifyouwould liketheadditionalinformation.

PullinganIntelliscorePlusscorewillresultinoneofthefollowing:

? Full report --Acompletereportwithascore.Oneofthethreemodelswithin Intelliscore Plus will be used:

? Commercial:Onlycommercialinformationisusedinthescorecalculation.

? Blended:Blendedconsumerandcommercialinformationisusedinthe score calculation.

? Owner only:Commercialinformationisnotpresent,soonlyconsumer informationisusedinthescorecalculation.Thescorereturnedisstill indicativeofcommercialrisk.

? 998 score:Thecompanyorownerfiledabankruptcyinthelast24months, and a score cannot be returned.

? 999 score:TherewasnotenoughinformationintheExperiandatabasesto generateascore.

In Commercial Intelliscore and Small Business Intelliscore, a combination of keynegativeandpositivescorefactorsweredisplayed,butthedisplaydidnot differentiatebetweenthetwotypesoffactors.Toreduceconfusion,onlythetop fourfactorsloweringthescorewillbedisplayedinIntelliscorePlus.Factors loweringthescorearethe"worst"factorsandbroughtthescoredownfrom100.

How can Intelliscore Plus be accessed?

AccesstoIntelliscorePlusisthroughExperian'sBizAppsSMonlinedeliverysystem appsandthroughExperian'sbatch,CPUandXML.

What is the FCRA?

TheFCRAistheFairCreditReportingAct,whichwasenactedin1970.TheFCRA helpsensurethatconsumercreditreportingagenciesactfairly,impartiallyandwith respecttoaconsumer'srighttoprivacywhilepreparingconsumerreports.Theright toprivacy,asitappliestouseoftheblendedmodelwithinIntelliscorePlus,means thatusersmusthavepermissiblepurposeinordertousethereports.

Is Intelliscore Plus FCRA-regulated?

Yes.IntelliscorePlusisregulatedundertheFCRAwhenownerinformationisused withintheinquiry.OnlyusersdeemedbyExperiantohavepermissiblepurposewill haveaccesstoownerinformationwithinIntelliscorePlus.

What is permissible purpose?

PermissiblepurposeisanFCRArequirementtouseconsumerdata.Permissible purposeisrequiredtousetheblendedmodelwithinIntelliscorePlus,andits conditionsaremetwhenatleastoneofthecriteriaineachofthecategories

below exists:

Acceptable uses of consumer/blended data: ? Toextendcommercialcredit,i.e.,creditthatisnotforpersonal,family

orhouseholduse

? Toreviewanexistingcommercialaccount

? Tocollectonanexistingcommercialaccount

Ifacceptableuseexists,theconsumerinformationpulledmustbefor: ? Asoleproprietor

? Ageneralpartnerinapartnershipthatistheaccountdebtor

? Anindividualwhohassignedapersonalguarantyofthesubjectdebt

? Anindividualwhohasprovidedwrittenauthorizationspecificallyapproving reviewofhisorherpersonalcredithistory

How will BizApps users know if they have permissible purpose to pull blended data?

Userswhodonothavepermissiblepurposetoaccessablendedreportwillhave accesstoonlythecommercialinputboxesintheinquirypage.Thoseuserswho haveblendedaccesswillseeboththecommercialandowner/guarantorinputboxes. Establishingpermissiblepurposeisaprocessthattypicallytakestwoweeksto complete.ContactyourExperiansalesrepresentativetogetstarted.

How long does an Intelliscore Plus report remain in the report manager?

AreportremainsintheBizAppsreportmanagerfor60days.

What type of inquiry will be logged for Intelliscore Plus batch and online transactions on the owner?

Thesystemwilllogbatchinquiriesasasoftinquiry.Allonlineinquiriesarelogged asahardinquiry.

What is an "Full Report" number, and how do I use it?

A"FullReport"numberisgeneratedforeveryIntelliscorePlusandcanbefound inthetoprightcornerofthereport.Usethefullreportnumberwithinthesame businessdaytoreceiveadiscountedBusinessProfileReportand/oraBusiness

Owner Profile.

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