System and method for rapid updating of credit information

• US 20030018549A1
• Filed: 06/07/2002
• Published: 01/23/2003
• Est. Priority Date: 06/07/2001
• Status: Active Grant

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Inventors: Yang, Dong, Fei, Huchen, Hong, Xiao
• Granted Patent: US 7,689,506 B2
• Time in Patent Office: Days
• US Class Current: 705/30
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/14 specially adapted for billing systems
• CPC Class Codes: G06Q 30/0283 Price estimation or determination
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/10 Tax strategies
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

According to one embodiment, the invention relates to a system and method for evaluating the creditworthiness of an account holder of a credit account comprising the steps of determining, at least once a day, whether a first data set relating to the creditworthiness of the account holder has been received from a credit reporting organization; determining, at least once a day, whether a second data set relating to transaction activity of the credit account has been received; periodically receiving from a credit reporting organization a third data set relating to the creditworthiness of the account holder; periodically receiving a fourth data set relating to the historical activity of the credit account; and using the first and second data sets, to the extent they have been received, and the third and fourth data sets to determine a measure of creditworthiness.

Claims

1. A method for evaluating the creditworthiness of an account holder of a credit account comprising the steps of:

determining, at least once a day, whether a first data set relating to the creditworthiness of the account holder has been received from a credit reporting organization;

determining, at least once a day, whether a second data set relating to transaction activity of the credit account has been received;

periodically receiving from a credit reporting organization a third data set relating to the creditworthiness of the account holder;

periodically receiving a fourth data set relating to the historical activity of the credit account; and

using the first and second data sets, to the extent they have been received, and the third and fourth data sets to determine a measure of creditworthiness.

2. The method of claim 1, wherein the third data set is received on a bimonthly basis, and the fourth data set is received on a monthly basis.

3. The method of claim 1, further comprising the steps of:

evaluating at least one parameter in the first, second, third, or fourth data sets to determine whether a triggering event has taken place; and

conditioning the step of determining the measure of creditworthiness on the occurrence of the triggering event.

4. The method of claim 3, wherein the triggering event comprises one of:

(a) a receipt of payment, and (b) a transaction greater than a predetermined amount, or (c) any event reported in the first data set.

5. The method of claim 1, further comprising the steps of:

creating an account transactions profile based on the second data set;

creating a credit history profile based on the third data set;

creating an account history profile based on the fourth data set; and

inputting the account transactions profile, the credit history profile, and the account history profile into a scoring engine to determine the measure of creditworthiness.

6. The method of claim 1, further comprising the steps of:

defining a plurality of account holder segments based on at least one characteristic of the account holders;

defining a risk model for each of the plurality of account holder segments; and

wherein the step of determining a measure of creditworthiness is carried out based on the risk model associated with the account holder.

7. The method of claim 1, further comprising the steps of:

representing a plurality of values in the fourth data set as a single value; and

using the single value in determining the measure of creditworthiness.

8. The method of claim 7, wherein the step of representing is carried out using a weighted average.

9. A system for evaluating the creditworthiness of an account holder of a credit account comprising:

means for determining, at least once a day, whether a first data set relating to the creditworthiness of the account holder has been received from a credit reporting organization;

means for determining, at least once a day, whether a second data set relating to transaction activity of the credit account has been received;

means for periodically receiving from a credit reporting organization a third data set relating to the creditworthiness of the account holder;

means for periodically receiving a fourth data set relating to the historical activity of the credit account; and

means for determining a measure of the creditworthiness using the first and second data sets, to the extent they have been received, and the third and fourth data sets.

10. A method of determining the creditworthiness of an account holder comprising the steps of:

receiving a credit history data set from a credit reporting organization on a periodic basis;

receiving an account history data set on a periodic basis;

receiving a significant events data set from a credit reporting organization at least once a day;

receiving an account transactions data set at least once a day; and

determining a measure of creditworthiness based on the credit history data set, the account history data set, the significant events data set, and the account transactions data set.

11. A method of determining the creditworthiness of an account holder comprising the steps of:

receiving a credit history data set from a credit reporting organization on a periodic basis;

receiving an account history data set on a periodic basis;

determining, at least once a day, whether a third data set relating to the creditworthiness of the account holder has been received; and

using the credit history data set, the account history data set, and the third data set to determine a measure of the creditworthiness of the account holder.

12. The method of claim 11, wherein the third data set comprises an account transactions data set.

13. The method of claim 11, wherein the third data set comprises a significant events data set received from a credit reporting organization.