Credit Solutions: Account Acquisition and Origination

When it comes to deciding who is credit-worthy and likely to respond to credit offers, challenges abound for both credit card issuers and mortgage lenders.

Credit card issuers are well aware that traditional credit card acquisition strategies no longer provide the yield that they used to.  As direct mail solicitation volume has grown, response rates have declined significantly. 

Meanwhile, the recent mortgage melt-down and rapid rise in delinquencies and foreclosures have led mortgage-lenders to be more critical in choosing who they lend to and what the terms will be.

Furthermore, lack of historical data continues to be an issue for both credit card issuers and mortgage marketers as delinquencies and bankruptcies continue to climb.  Universe expansion is now more important than ever, but additional data is needed to make wise lending decisions.

New Insights for Lending Decisions

IXI offers a set of robust economic filters that can supplement traditional credit scoring and transaction histories to provide a clearer view of a household’s ability to:

• Spend and transact
• Make monthly payments on time
• Proactively identify borrowers and credit-seekers that are most likely to default  
• Attain significant charge volume

These filters, known as IXI’s Ability to Pay Solutions, are used to estimate a household’s financial “safety net”, allowing marketers to determine how much cash a household might have beyond what is reported by traditional income measures and survey based estimates of assets. 

Derived from IXI’s proprietary wealth database of over $24 trillion in consumer assets, IXI’s Ability to Pay suite, enables firms that offer mortgages, credit cards, HELOC, auto loans, and other consumer loans to assess consumer capacity to meet their financial commitments. 

The result is that you make the right lending decision and offer to credit-worthy customers who have the ability to spend and stay current with ongoing credit commitments, and decline the rest, thereby avoiding future write-downs.