Creditworthiness and Affordability Indicators combine insight into a borrower’s income with information on outstanding debt and credit usage to help with responsible and better lending decisions.
Our toolset can help to address regulatory challenges by estimating a borrower’s financial capacity to repay loans. Our solution incorporates information on your customer’s estimated income level, credit balances and usage, to provide a clearer understanding on the customer’s financial situation.
This can be used at point of application and will also enable you to perform ongoing monitoring and management of affordability on existing customer portfolios.
Creditworthiness and Affordability Indicators can help you to:
- Evidence income
- Set credit terms
- Identify early signs of financial distress and changing financial circumstances
- Reduce bad debt
- Inform upsell/cross sell strategies
- Identify next best action
We understand that during turbulent times businesses may need more information about their customers in order to make a more informed decision either during or after a pandemic. Equifax is able to offer an enhanced CATO set of characteristics that can assist you to:
Compare pre and post COVID-19 incomes
Identify financial vulnerabilities
Identify income shock
Verify gross/net income over shorter periods
Run directional income assessments with multiple RAGs
This solution is available in batch, retrospectively or as XML.