Systems and Methods for Minimizing Effects of Authorized User Credit Tradelines
First Claim
1. A method for evaluating the credit risk of an individual or entity associated with a plurality of trade lines, the method comprising the steps of:
- identifying each of the plurality of trade lines for which the individual or entity is an authorized user;
combining at least one characteristic of all said authorized user trade lines to produce an authorized user trade line total;
combining the at least one characteristic of all of the plurality of trade lines for which the individual or entity is a base user to produce a base user trade line total;
calculating a ratio between the authorized user trade line total and the base user trade line total, wherein the ratio is indicative of a likelihood that the individual or entity is attempting to misrepresent the risk associated with their credit; and
generating an alert should the ratio exceed a user-defined amount.
5 Assignments
0 Petitions
Accused Products
Abstract
Systems and methods for identifying, evaluating, and accounting for effects of authorized user trade lines are disclosed. The systems and methods incorporate use of credit characteristics that describe the nature of authorized user trade lines on a credit file or across credit files, and the influence of those authorized user relationships relative to the non-authorized user trade lines on the credit file in the evaluation of credit risk. Systems and methods incorporating these credit characteristics can be used in identifying any bias in perceived credit risk, in the evaluation of credit risk, or other credit-related evaluation.
-
Citations
21 Claims
-
1. A method for evaluating the credit risk of an individual or entity associated with a plurality of trade lines, the method comprising the steps of:
-
identifying each of the plurality of trade lines for which the individual or entity is an authorized user; combining at least one characteristic of all said authorized user trade lines to produce an authorized user trade line total; combining the at least one characteristic of all of the plurality of trade lines for which the individual or entity is a base user to produce a base user trade line total; calculating a ratio between the authorized user trade line total and the base user trade line total, wherein the ratio is indicative of a likelihood that the individual or entity is attempting to misrepresent the risk associated with their credit; and generating an alert should the ratio exceed a user-defined amount. - View Dependent Claims (2, 3, 4, 5, 6, 7)
-
-
8. A method for evaluating risk across a debt portfolio comprised of a plurality of individual accounts, each individual account having at least one account holder responsible for at least a portion of the outstanding debt associated with the individual account, the method comprising the steps of:
-
filtering the debt portfolio to identify high risk accounts, the high risk accounts comprising individual accounts from among the plurality of individual accounts that meet user-defined criteria, at least one of the criteria relating to trade lines of the at least one account holder for which the at least one account holder is an authorized user; analyzing at least one characteristic of the trade lines of each at least one account holder responsible for a high risk account to determine a result indicative of a likelihood that the at least one account holder is using authorized user trade lines to misrepresent the risk associated with their credit; and assigning a relative risk to the debt portfolio based on comparing total debt in the debt portfolio to total debt associated with those high risk accounts wherein the result yielded by the analyzing step met a user-defined criteria. - View Dependent Claims (9, 10, 11, 12, 13, 14, 15, 16, 17)
-
-
18. A method for identifying and evaluating effects of authorized user trade lines on credit scoring, the method comprising the steps of:
-
obtaining data related to credit of an individual; processing the data based on predefined characteristics having a correlation to effects of authorized user trade lines on credit scoring; outputting statistics based on the predefined characteristics; comparing those statistics to pre-defined limits; and generating a user alert when the pre-defined limits are exceeded. - View Dependent Claims (19)
-
-
20. A system for processing data to determine authorized user trade line effects on credit scoring, the system comprising:
-
a server; at least one credit database in communication with the server; and a client device in communication with the server, the client device capable of sending data associated with a consumer, and the server capable of facilitating processing of the data against the credit database based on predefined characteristics having a correlation to effects of authorized user trade lines on credit scoring;
the client device further capable of receiving the processed data from the server as an output indicative of the effect of authorize user trade lines on credit scoring of a consumer. - View Dependent Claims (21)
-
Specification