With credit card charge-offs over $3 billion per year* and the delinquency rate hovering over 1%**, it’s essential for credit card issuers and collections agencies to be able to prioritize delinquent accounts.
By supplementing traditional credit scoring and decisioning processes with an economic profile of clients, credit card issuers can better assess delinquent accounts based on a customer’s ability to pay their credit card bill.
IXI’s wealth-based Ability to Pay Solutions, modeled from multiple sources, including summary factors produced by IXI’s proprietary database of consumer investable assets, supplement existing collection treatment strategies to help firms better manage their credit portfolios, such as:
- When capturing funds is the priority, actively pursue delinquent customers who have significant ability to pay
- To minimize risk, write off or sell customer portfolios that have low discretionary spending capacity. Learn more about our tools to enhance Portfolio Valuation.
- Gain incremental revenue from late fees for overdue accounts for those customers that have the capacity to pay, but let the mail pile up
- Carefully monitor customers who have traditionally been on-time in meeting their credit obligations, but who have recently become delinquent; examine their economic profile to assess the likelihood that they can meet their credit obligations as rates change
Learn more about our Ability to Pay Solutions: Ability to Pay Index, Income360, Comp360, and CreditStyles Pro1.
Check out our segmentation solutions to help fine-tune your communications to your target audience: Financial Cohorts and Economic Cohorts.
Learn more about how your firm can better understand the credit health of target markets with CreditMix.
*Moodys
**TransUnion