Methods and systems for actively optimizing a credit score and managing/reducing debt

• US 8,078,527 B2
• Filed: 07/23/2008
• Issued: 12/13/2011
• Est. Priority Date: 12/29/1999
• Status: Expired due to Term

• Current Assignee: Western Union
• Original Assignee: Western Union
• Inventors: Cerise, Nicholas, Rogers, Michael W., Grant, William R.
• Primary Examiner(s): Merchant, Shahid
• Assistant Examiner(s): Holly, John H
• Application Number:
  US12/178,314
• Publication Number:
  US 20090063330A1
• Time in Patent Office: 1,238 Days
• Field of Search: 705/1, 705/38, 705/1.1, 705/40, 705/35, 705/36, 705/39, 705/36.R, 705/34, 705/30, 705/43, 705/45, 710/33, 235/379
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/128 Check-book balancing, updating or printing arrangements

Abstract

The invention provides various systems and methods for actively optimizing a credit score and reducing debt. The method includes receiving a credit report including credit accounts, balances, interest rates, and rate types for the credit accounts. The method further receives bank account and payroll information, as well as fixed and variable expense information. The method then generates a financial report based on the received information. Based on the financial report, the method calculates a payment amount, and determines available unassigned income. An allocation of the available income for debt reduction and credit score optimization is received, and the method dynamically allocates the funds to pay the credit accounts, the fixed expenses, and variable expenses such that the customer'"'"'s debt is reduced and the customer'"'"'s credit score is improved.

Claims

1. A method for actively increasing a credit score and reducing debt for a customer, the method comprising:

dynamically receiving, at a computer system, a credit report for the customer, wherein the credit report includes credit accounts, balance information for the credit accounts, interest rate information for the credit accounts, and interest types for the credit accounts;

receiving, at the computer system, bank account information and payroll information;

receiving, at the computer system, fixed and variable expense information;

generating, at the computer system, a financial report based on an aggregation of the credit report information, the bank account information, the payroll information, the fixed expense information, and the variable expense information;

based at least in part on the financial report, calculating, at the computer system, a payment amount;

based at least in part on the payment amount, determining, at the computer system, available unassigned income;

receiving, at the computer system, an allocation of the available unassigned income for debt reduction and credit score optimization; and

dynamically allocating, at the computer system, the available unassigned income to pay one or more of the credit accounts, the fixed expenses, and the variable expenses such that the customer'"'"'s debt is reduced and the customer'"'"'s credit score is improved, wherein the allocating of the available unassigned income is based on the interest rate of the credit accounts, the interest type of the credit accounts, and the due dates of the credit accounts.

2. The method as in claim 1, further comprising:

in response to the customer receiving the financial report, receiving additional financial information from the customer missing from the financial report; and

incorporating the additional financial information into the financial report, and creating a revised financial report.

3. The method as in claim 1, further comprising, based at least in part on the financial report, offering the customer debt consolidation offers and/or lower interest rate credit card offers.

4. The method as in claim 3, further comprising:

presenting the customer with a mechanism to accept the debt consolidation and/or lower interest rate credit card offers; and

in response to the customer accepting the offers, automatically allocating funds according to the offer.

5. The method as in claim 1, wherein the customer inputs the bank account information, the payroll information, the fixed expense information and the variable expense information via a user interface.

6. The method as in claim 1, wherein the account information includes one or more of the following:

bank account types, issuing bank, and bank account balances.

7. The method as in claim 1, wherein payroll information includes one or more of the following:

payday amounts, and payday frequency.

8. The method as in claim 1, wherein fixed expense information includes one or more of the following:

automobile payments, insurance payments, student loan payments, and mortgage payments.

9. The method as in claim 1, wherein variable expense information includes one or more of the following:

utility expenses, groceries expenses, and entertainment expenses.

10. The method as in claim 1, wherein the interest types of the credit accounts include one or more of a simple interest rate and a compound interest rate.

11. A system for actively optimizing a credit score and reducing debt, the system comprising:

an interface configured to receive financial input from a customer;

a plurality of payees computer configured to transmit bills for services rendered to the customer and to receive payment for the services;

a credit institution computer configured to generate a credit report for the customer, wherein the credit report includes credit accounts, balance information for the credit accounts, interest rate information for the credit accounts, and interest types for the credit accounts;

a banking institution computer configured to receive income funds for the customer;

a payment center coupled with the interface, the plurality of payees, the credit institution, and the banking institution, the payment center configured to dynamically receive the credit report for the customer from the credit institution, to receive bank account information and payroll information from the banking institution, and to receive fixed and variable expense information via the interface; and

wherein the payment center computer includes a fund allocation engine configured to generate a financial report based on an aggregation of the credit report information, the bank account information, payroll information, fixed expense information, and the variable expense information, based at least in part on the financial report, to calculate a payment amount, based at least in part on the payment amount, to determine available income, wherein the available income includes unassigned income, to receive an allocation of the available unassigned income for debt reduction and credit score optimization via the interface, and to dynamically allocate the available unassigned income to pay one or more of the credit accounts, the fixed expenses, and the variable expenses such that the customer'"'"'s debt is reduced and the customer'"'"'s credit score is improved, wherein the allocating of the available unassigned income is based on the interest rate of the credit accounts, the interest type of the credit accounts, and the due dates of the credit accounts.

12. The system as in claim 11, further comprising a financial partner configured, based on the interest rates of the credit accounts, to offer the customer lower interest rate credit cards to replace a higher interest rate credit card.

13. The system as in claim 11, wherein the interface includes one or more of the following:

an interactive voice recognition (IVR), a branch office, a web interface, and a mobile device.

14. The system as in claim 13, wherein the mobile device includes one or more of the following:

a cellular device, a handheld device, a laptop computer, a personal digital assistant, and a smartphone.

15. A non-transitory machine readable medium having a set of instructions stored thereon for actively optimizing a credit score and reducing debt which, when executed by a machine, cause the machine to:

dynamically receive a credit report for the customer, wherein the credit report includes credit accounts, balance information for the credit accounts, interest rate information for the credit accounts, and interest types for the credit accounts;

receive bank account information and payroll information from the customer;

receive fixed and variable expense information from the customer;

generate a financial report based on an aggregation of the credit report information, the bank account information, the payroll information, the fixed expense information, and the variable expense information;

based at least in part on the financial report, calculate a payment amount;

based at least in part on the payment amount, determine available income, wherein the available income includes unassigned income;

receive an allocation of the available unassigned income for debt reduction and credit score optimization; and

dynamically allocate the available income to pay one or more of the credit accounts, the fixed expenses, and the variable expenses such that the customer'"'"'s debt is reduced and the customer'"'"'s credit score is improved, wherein the allocating of the available unassigned income is based on the interest rate of the credit accounts, the interest type of the credit accounts, and the due dates of the credit accounts.

16. The non-transitory machine readable medium as in claim 15, wherein the sets of instructions when further executed by the machine, cause the machine to:

hold funds based on the determined allocation of the available income; and

remit the held funds to pay the one or more of the credit accounts, the fixed expenses, and variable expenses.

17. The non-transitory machine readable medium as in claim 15, wherein the sets of instructions when further executed by the machine, cause the machine to based at least in part on the financial report, offer the customer debt consolidation offers and/or lower interest rate credit card offers.

18. The non-transitory machine readable medium as in claim 17, wherein the sets of instructions when further executed by the machine, cause the machine to:

present the customer with a mechanism to accept the debt consolidation and/or lower interest rate credit card offers; and

in response to the customer accepting the offers, automatically allocate funds according to the offer.