Cure rate

Cure rate is the share of delinquent accounts that return to current during a specified measurement period. It is calculated by dividing the number of delinquent accounts that become current by the number of delinquent accounts in the measured group, then expressing the result as a percentage.

Example

For an illustration, suppose 100 accounts are delinquent at the start of a measurement period and 30 return to current during it. The cure rate is 30 ÷ 100 = 30%.

On collections decisioning, the lender measures cure rates; Decisimo uses days past due and a risk band in a decision table to set treatment and contact channel.

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