A new credit product utilizes more details about past credit behavior to do a better job of predicting future credit trends.
The product, Dimensions, provides mortgage lenders with up to two years of detailed credit activity — enabling more precise and profitable lending decisions.
Hundreds of detailed payment characteristics are analyzed to identify consumer patterns by industry and account type.
Equifax, which announced the offering last week, said creditors can identify which loan prospects are most likely to open accounts.
It also enables lenders to predict how much and where consumers are likely to spend.
Other benefits include determining the ratio of spend against certain factors, like balance or payment; identifying the propensity of a consumer to accept a balance transfer; and predicting a consumer’s capacity to incur additional debt while staying current.
In addition, lenders can determine breaking point of spend that will lead to a default and get a better sense of the chance of bankruptcy.
“Equifax Dimensions gives our customers a window to look further into consumer credit trends so that they can make more informed lending decisions to therefore increase profitability,” Equifax Senior Vice President Product Innovation and Management John Cullerton stated. “Equifax is constantly utilizing deeper, more meaningful analytics so that we can provide innovative solutions designed specifically to meet our customer’s needs.”
