Tag: consumer credit trends

Download our infographic to explore industry trends and practical solutions to unlock growth and take steps toward a more profitable future.

View our digital lending trends report for a full analysis on origination volume trends, delinquency trends, and consumer behavior insights. Read more!

With the right technologies and solutions, rental housing operators can manage risk and create better experiences for prospective renters.

Matthew Baltzer, Senior Director of Product Marketing, discusses challenges facing the debt collections industry and how to build a profitable portfolio.

With Experian’s Prospect Triggers, this credit union was able to pinpoint consumers that met their credit criteria & were likely to respond to their offers.

According to Experian’s State of the Automotive Finance Market Report: Q2 2022, the average new vehicle interest loan rate for consumers with a credit score between 501 and 600, also referred to as subprime, was 9.75%—compared to prime consumers with a credit score between 661 and 780, who had an average new vehicle interest loan rate of 4.03% this quarter.

According to Experian’s State of the Automotive Finance Market Report: Q1 2022, credit unions had their highest total share in five years

As more consumers apply for credit and increase their spending1, lenders and financial institutions have an opportunity to expand their portfolios and improve profitability. The challenge is ensuring they’re extending credit responsibly and inclusively. Millions of Americans, many of whom are creditworthy, lack access to mainstream credit options. This may be because they have limited or no credit history, negative information within their credit file, or are a part of a historically disadvantaged group. To say “yes” to consumers they otherwise couldn’t or wouldn’t lend to, lenders must gain a deeper understanding of an individual’s stability, ability and willingness to pay. That’s where expanded FCRA-regulated and trended data come in. While traditional credit data has long been the primary means of gauging creditworthiness, it doesn’t tell the full story of a consumer’s financial situation. Let’s explore how differentiated data can help lenders make more informed credit decisions. Using differentiated data for deeper lending Expanded FCRA-regulated data provides supplemental credit data to help lenders gain a more holistic view of their current and prospective customers. Some examples of expanded FCRA-regulated data include alternative financial services data from nontraditional lenders, consumer-permissioned account data, rental payments and full-file public records. Because this data drives greater visibility and transparency around inquiry and payment behaviors, lenders can more accurately determine a consumer’s ability to pay and distinguish between reliable and high-risk applicants. In turn, lenders can approve more creditworthy consumers, grow their portfolios and increase financial opportunities for underserved communities, all while preventing and mitigating risk. 89% of lenders agree that expanded FCRA-regulated data allows them to extend credit to more consumers. Trended data empowers lenders with predictive insights into consumers by providing key balance and payment data for the previous 24 months. This is important as lenders can determine if a consumer’s credit behavior has improved or deteriorated over time. In turn, lenders can: Identify creditworthy customers: Establish if a consumer has a demonstrated ability to pay, is consistently paying more than the minimum payment, or shows no signs of payment stress. Increase response rates: Match the right products with the right prospects. Determine upsell and cross-sell opportunities: Present relevant offers based on anticipated needs and behaviors. Limit loss exposure: Understand the direction and velocity of payment performance to effectively manage risk exposure. Trended data helps lenders better predict future behavior, manage portfolio risk and design the best marketing offers. Turning insights into action Together, trended and expanded FCRA-regulated data benefit lenders and consumers alike. With a more holistic view of their customers, lenders gain powerful insights to lend deeper, ultimately helping them to expand their portfolios and drive greater access to credit for underserved communities. Learn more 1 The Recovery of Credit Applications to Pre-Pandemic Levels, Consumer Financial Protection Bureau, 2021.

Discover how you can leverage expanded data sources to make better decisions and empower consumers to more easily access financial opportunities.

Generation Z has money on their minds, and as their appetite for personal finance grows, financial institutions better be ready.

Last year’s predictions of a new set of Roaring 20’s may not have panned out the way we imagine, but many did evolve. Here are six trends to watch in 2021.

While things aren't quite back to normal in Q3 2020, there were a number of positive trends that demonstrates the automotive industry's resilience.

According to research, only 15% of American consumers have swapped out their go-to credit card in the past year. Here's how to keep your card top of mind.

Since the end of the recession, customer loyalty has been a focus for lenders, given that there are more options for AFS borrowers. Read more!

Today is National Fintech Day, a day that recognizes the important role that fintech companies play in revolutionizing the financial services landscape.