Roll rate

A roll rate is the share of accounts in a delinquency bucket that move to a worse bucket from one month to the next. Analysts usually calculate it for each starting bucket to study how delinquency is progressing over time.

Example

Suppose 100 accounts are in the 30–59 days past due bucket at one month-end. At the next month-end, 12 of those accounts are in the 60–89 days past due bucket, so the illustrative roll rate from 30–59 to 60–89 days past due is 12%.

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