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
Steady Freddy
Bankers Friend

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