SYSTEM AND METHOD FOR PREDICTING CONSUMER CREDIT RISK USING INCOME RISK BASED CREDIT SCORE
First Claim
1. A computer-implemented method to predict consumers'"'"' credit risk by determining their income risk;
- wherein the said credit risk is the probability of consumers defaulting on their payment obligations including credit card debt, personal loans, automotive loans, student loans, mortgage loans, and other types of consumer loans;
wherein the said credit risk also means the consumers'"'"' ability to pay;
wherein the said credit risk also means the consumers'"'"' capacity to pay;
wherein the said income risk is predicted using consumer data;
wherein the said income risk is predicted using consumers'"'"' unemployment risk;
wherein the said income risk is derived from consumers'"'"' unemployment risk;
wherein the said income risk is derived from consumers'"'"' income loss risk;
wherein the said income risk is derived from consumers'"'"' income reduction risk;
wherein the said income risk is derived from consumers'"'"' probability of continuance of income;
wherein the said income risk is assigned a numerical or qualitative value;
wherein the said income risk is correlated with consumers'"'"' credit risk, payment default risk, payment behavior, and ability to pay;
wherein the said income risk is based on economy'"'"'s impact on consumers'"'"' income;
wherein the said income risk is based on correlations between consumers'"'"' personal data and economic conditions data including unemployment rates, job growth, wages, inflation, trade, GDP, home prices, construction activity, manufacturing activity, retail sales, and others;
wherein the said income risk is transformed into an income risk score;
wherein the income risk score is used to predict consumers'"'"' response behavior, purchasing propensity, and ability to pay;
wherein the said income risk is transformed into an income risk based credit score to predict consumers'"'"' credit risk and payment default risk;
wherein the said income risk based credit score is derived from a risk forecasting computer;
wherein the risk forecasting computer consists of a microprocessor CPU, memory, databases, software programs, analytical and statistical programs, input and output devices, and networking capability; and
wherein the income risk based credit score is an empirically derived, demonstrably and statistically sound credit score predicting consumers'"'"' credit risk that is based on their future income and future ability to pay; and
implementing said data into consumer scoring and scoring systems.
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Accused Products
Abstract
Systems and methods are described for scoring consumers'"'"' credit risk by determining consumers'"'"' income risk and future ability to pay. Methods are provided for measuring consumers'"'"' income risk by analyzing consumers'"'"' income loss risk, income reduction risk, probability of continuance of income, and economy'"'"'s impact on consumers'"'"' income. In one embodiment, a method is provided to evaluate an individual'"'"'s creditworthiness using income risk based credit score thereby providing creditors, lenders, marketers, and companies with deeper, new insights into consumer'"'"'s credit risk and repayment potential. By predicting consumers'"'"' income risk and the associated creditworthiness the present invention increases the accuracy and reliability of consumers'"'"' credit risk assessments, results in more predictive and precise consumer credit scoring, and offers a new method of rendering a forward-looking appraisal of an individual'"'"'s ability to repay a debt or the ability to pay for products and services.
363 Citations
21 Claims
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1. A computer-implemented method to predict consumers'"'"' credit risk by determining their income risk;
wherein the said credit risk is the probability of consumers defaulting on their payment obligations including credit card debt, personal loans, automotive loans, student loans, mortgage loans, and other types of consumer loans;
wherein the said credit risk also means the consumers'"'"' ability to pay;
wherein the said credit risk also means the consumers'"'"' capacity to pay;
wherein the said income risk is predicted using consumer data;
wherein the said income risk is predicted using consumers'"'"' unemployment risk;
wherein the said income risk is derived from consumers'"'"' unemployment risk;
wherein the said income risk is derived from consumers'"'"' income loss risk;
wherein the said income risk is derived from consumers'"'"' income reduction risk;
wherein the said income risk is derived from consumers'"'"' probability of continuance of income;
wherein the said income risk is assigned a numerical or qualitative value;
wherein the said income risk is correlated with consumers'"'"' credit risk, payment default risk, payment behavior, and ability to pay;
wherein the said income risk is based on economy'"'"'s impact on consumers'"'"' income;
wherein the said income risk is based on correlations between consumers'"'"' personal data and economic conditions data including unemployment rates, job growth, wages, inflation, trade, GDP, home prices, construction activity, manufacturing activity, retail sales, and others;
wherein the said income risk is transformed into an income risk score;
wherein the income risk score is used to predict consumers'"'"' response behavior, purchasing propensity, and ability to pay;
wherein the said income risk is transformed into an income risk based credit score to predict consumers'"'"' credit risk and payment default risk;
wherein the said income risk based credit score is derived from a risk forecasting computer;
wherein the risk forecasting computer consists of a microprocessor CPU, memory, databases, software programs, analytical and statistical programs, input and output devices, and networking capability; and
wherein the income risk based credit score is an empirically derived, demonstrably and statistically sound credit score predicting consumers'"'"' credit risk that is based on their future income and future ability to pay; and
implementing said data into consumer scoring and scoring systems.- View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19)
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20. A computer-implemented method to compute a short term and a long term employment based creditworthiness score and index utilizing an individual consumer'"'"'s personal unemployment probability, income risk, and probability of continuance of income on a mechanism selected from the group consisting of unemployment risk scores, projected unemployment rates for short term and long term, current income, expected income growth for short term and long term, expected duration of employment for short term and long term, current and expected education level, expected job changes, current and future cost of living projections, job change history, and income history.
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21. A computer-implemented method of utilizing an individual consumer'"'"'s personal unemployment probability and income risk to generate a credit score, said method comprising:
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predicting payment defaults, delinquencies and charge off for credit card loans; predicting mortgage payment defaults for mortgage loans; predicting payment defaults for auto loans; predicting payment defaults for student loans; predicting payment defaults for payday loans; predicting payment defaults secured and unsecured personal loans; and predicting premium payment defaults for insurance policies including vehicle insurance, home insurance, life insurance and medical insurance.
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Specification