Historical debt payments and balances often have limited value for predicting someone’s ability and willingness to pay their debts. To make the best assessment of credit risk, lenders need to see all of a consumer’s financial obligations as well as their earnings.
EDGE provide risk signals similar to other credit bureaus but more comprehensive and more up-to-the-minute because they’re based on cash flow and balances at the time of the loan application.
Solutions from EDGE that are integral to many lenders’ underwriting processes include a default risk score based on industry-wide reported loan outcomes and thousands of attributes (or features) with credit risk relevant insights from consumers’ cash flow behaviors.
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Traditional bureau scores are near all-time highs even though more Americans than ever are living paycheck to paycheck. EDGE risk signals can reveal consumers whose finances are deteriorating and whose default risk has risen even though their FICO score and VantageScore remain high.
Meanwhile, there are millions of Americans who earn a good income and live within their means but don’t rate well with the mainstream credit bureaus. With EDGE, lenders are identifying more good applicants who might otherwise have been declined using traditional risk analytics.
EDGE and lender partner to determine relevant EDGE risk signals and levels.
Consumer permissions access to banking activity data during lenders’ credit application and risk insights are generated by EDGE in real-time.
Lender’s credit models and scorecards utilize EDGE risk signals to inform auto-approve and review decisions.