Score class – What do I need to know?

For us, at iuvo, it is important to communicate with you regularly. We insist on sharing news about our loan originators and to give you useful information, which you can apply while investing.

Today we will pay attention to the score class of the loans on iuvo. What does it mean, how it can be used and why is this information important?

Score class is a filter that is set up in most strategies on iuvo. Its main purpose is to find balance between interest and probability of delayed payments. In combination with the rest of the filters in the Auto Invest, your strategy can invest the funds in a way that will bring you satisfying return rate.

The score classes help make the loans, granted from different companies, comparable. It shows you what the probability is for the specific borrower to not fulfill the payment schedule they have agreed on and to delay the full repayment of an installment. Behind the score class stays a percent, which is determined by the client profile (employment, salary, marital status, age, education, etc.), their credit history and other factors.

The probability of delayed payments by the borrower is described in ascending order in the different score classes, as follows:

Class A: 0 – 4%
Class B: 4 – 10%
Class C: 10 – 18%
Class D: 18 – 25%
Class E: 25 – 35%
Class HR: over 35%

It is needed to note that these are average rates and as there are loans in score class HR that get paid on time, there are loans in score class A or B, for example, that is possible to have some delays as well.

In order to have better diversification of your investments between the different originators, please be aware that each company is specified in granting a specific type of loans with different segment of borrowers.

If you would like to invest more efficiently, it is important to know what loans you can expect from each originator. The credit companies provide you with opportunities for investing with different interest rate for the different segment of their borrowers. It is important to keep in mind the maturity of the loans and other specifics in order to invest in loans that match your strategy and existing loans on our market at the moment.

If you need any assistance to create an efficient strategy, please contact us via chat, phone, or email, or contact your personal account manager directly.

Happy investing with iuvo!

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