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High IV variables in scorecard

Question asked by Makenna.Brei Advocate on May 5, 2017
Latest reply on May 9, 2017 by jhartley@fico.com

In some development projects using FICO Scorecard Pro, I've noticed unusually high IV (Information Value) statistics, typically from 0.6 to as high as 3.9. Since most literature on credit scoring suggests that any variable with an IV exceeding 0.5 should be concerning, should I be necessarily concerned with my variables that showed these high IV statistics?

 

This question came from a customer in the banking industry.

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