What is the Credit Offer Engine?
Carrington Labs' Credit Offer Engine works out how much to lend and at what price for each borrower, based on their probability of default and your financial goals and risk strategy — finding the optimal amount, term, and price.
How does it decide how much to lend?
It maps a borrower's probability of default to your portfolio performance and objectives, then finds the amount, term, and price that maximize value within your risk guardrails.
What does it look at?
It uses borrower and account data, bureau data where available, the requested amount and term, your optimization ranges for amount, term, interest rate, and fee, and your policy limits — such as maximum default probability, minimum acceptance probability, minimum contribution margin, and regulatory rate and term bounds.
What does it provide?
It returns a recommended, value-maximizing offer plus alternatives and the borrower's preferred offer — each with amount, term, interest rate, and fee, and the modeled probability of default, expected loss, contribution margin, acceptance probability, and expected contribution.
Does it set offers automatically, or do we stay in control?
You stay in control. The engine provides decision-ready limit and pricing outputs; you keep policy and the final decision.
Can it grow limits without increasing losses?
Yes. It's built to lift utilization and margin while keeping loss rates inside the guardrails you set.
Does it need a credit risk model to work?
It works best alongside a probability-of-default view of risk. It can use your existing model or a Carrington Labs Credit Risk Model, then translate that risk into offers.
How does it fit our existing stack?
Delivered via API or batch into your current origination, decisioning, and account-management workflows.
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