Consumer Credit Behavior – Applications
What if you could identify a consumer’s Style of Credit Behavior?
As a result of today’s economic climate, consumer’s credit and debt behaviors are changing…in some cases dramatically.
- Financial institutions are much more conservative in issuing loans and many are changing the terms and conditions of existing accounts.
- The housing market continues to "slump," and mortgage companies are focused on foreclosure prevention opportunities.
- Consumer spending is down across many categories, including travel, entertainment, household durables and general merchandise.
Households are adopting new decision criteria to determine their new style of credit behavior, greatly impacting purchasing and investment activities.
What’s the Benefit to Your Business?
- Improve acquisition, retention and cross-sell efforts
- Understand group credit behaviors at block level
- Target based on credit behavior, without the obligation to make a firm offer of credit
- Improve segmentation accuracy with true household level data aggregation
| Question | Category | Example Attributes | Potential Users |
|---|---|---|---|
| Can this consumer afford to buy my product? |
Capacity to Pay |
Number of open credit card accounts Available credit card balance Number of accounts paid as agreed |
Anyone currently using income-related attributes Retail, Travel and Entertainment, Telco, Cable |
| Is this consumer financially strapped? |
Financial Stress |
Number of days past due and amount past due Collections Risk scores Bankruptcy and foreclosure |
Interest in measuring risk Suppression activities |
| How active is this consumer in shopping for and opening new credit lines? |
Financial Activity |
Number of inquiries for new credit Recency of open accounts Age of mortgage accounts |
Any financial institution including mortgage Insurance Retail |
| How does this consumer use credit? |
Credit Behavior |
CreditStyles Insights
Plastic Happy |
Credit Card Co.’s Lenders Analysts for profiling |
| How do we measure these consumers across all detailed credit attributes? |
Detailed Credit Attribute |
Over 200+ credit attributes, aggregated at neighborhood level List and House File Enhancement Modeling and Profiling |
Large Financial Institutions, Insurance, Telco, Analytics/Modeling |
