Credit score simulation

• US 8,321,334 B1
• Filed: 03/04/2011
• Issued: 11/27/2012
• Est. Priority Date: 05/30/2003
• Status: Expired due to Term

• Current Assignee: Experian Information Solutions Incorporated (Experian plc)
• Original Assignee: Experian Information Solutions Incorporated (Experian plc)
• Inventors: Kornegay, Adam T., Schwab, Matthew R., de Almeida, Marcos C.
• Primary Examiner(s): Hamilton, Lalita M
• Application Number:
  US13/041,274
• Time in Patent Office: 634 Days
• Field of Search: 705/35, 705/38
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• 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 40/08 Insurance

Abstract

Systems and methods are described that simulate a credit score. The system enables a user to modify a credit data element in order to determine its effect on a credit score. The user can modify the element directly or simulate an action that, if performed, would modify the element. Since the number of possible modifications and actions can be overwhelming, in one embodiment, the system suggests modifications and actions to be simulated. These suggestions can be tailored to a user'"'"'s goal, such as increasing a credit score by a particular number of points or allocating a particular sum of money in order to maximize a credit score. In one embodiment, the system obtains credit data from multiple credit bureaus and can determine credit scores using different algorithms, such as the different algorithms used by the different credit bureaus.

Claims

1. A method for simulating a financial risk score, the method comprising:

receiving financial data about a consumer and an initial financial risk score of the consumer that is calculated based upon the financial data;

receiving a financial objective related to improving the financial risk score of the consumer; and

executing computer-executable instructions on a computer processor, thereby causing computer hardware to;

run a plurality of scenarios in which hypothetical changes are made to the financial data;

generate a simulated financial risk score for each of the scenarios;

compare the simulated financial risk scores with the initial financial risk score;

identify at least one scenario that would achieve the financial objective based upon the simulated financial risk score for that scenario; and

communicate the hypothetical changes and the simulated financial risk score associated with the identified scenario.

2. The method of claim 1, wherein the computer hardware communicates the hypothetical changes and the simulated financial risk score associated with the identified scenario to an automated process.

3. The method of claim 1, wherein the computer hardware communicates the hypothetical changes and the simulated financial risk score associated with the identified scenario to a computer user.

4. The method of claim 1, wherein the computer hardware communicates the hypothetical changes and the simulated financial risk score associated with the identified scenario to the consumer.

5. The method of claim 1, wherein the financial objective is selected from a group that includes identifying hypothetical changes that would increase the initial financial risk score a desired amount by allocation of a specified amount of money.

6. The method of claim 5, wherein the desired amount is or is about the highest increase for all of the scenarios that were run.

7. The method of claim 1, wherein the financial objective is selected from a group that includes identifying hypothetical changes that would increase the initial financial risk score by a specified number of points.

8. The method of claim 1, further comprising determining how many scenarios to run based, at least in part, upon the financial objective.

9. The method of claim 1, further comprising determining how many scenarios to run based upon a function that correlates a number of scenarios run with the accuracy that would be achieved by running that number of scenarios.

10. The method of claim 9, wherein the accuracy increases as the number of scenarios increases.

11. The method of claim 1, wherein the computer hardware determines a set of scenarios that are likely to include a scenario that achieves an optimal or near optimal result in accordance with the financial objective.

12. A system for simulating a score associated with a consumer, the system comprising:

computer storage that stores consumer data about a plurality of consumers and computer-executable instructions;

at least one computer processor configured to execute the computer-executable instructions stored in the computer storage, thereby causing computer hardware to perform operations comprising;

receiving consumer data and an initial consumer score that is calculated based upon the consumer data;

receiving an objective related to making a desired change to the consumer score;

running a plurality of scenarios in which hypothetical changes are made to the consumer data;

generating a simulated consumer score for each of the scenarios;

comparing the simulated consumer score with the initial consumer score;

identifying at least one scenario that would achieve the objective based upon the simulated consumer score for that scenario; and

communicating the hypothetical changes and the simulated consumer score associated with the identified scenario.

13. The system of claim 12, wherein the computer hardware communicates the hypothetical changes and the simulated consumer score associated with the identified scenario to an end user.

14. The system of claim 13, wherein the desired amount is or is about the highest increase for all of the scenarios that were run.

15. The system of claim 12, wherein the objective is selected from a group that includes identifying hypothetical changes that would increase the initial consumer score a desired amount by allocation of a specified amount of money.

16. The system of claim 12, wherein the objective is selected from a group that includes identifying hypothetical changes that would increase the initial consumer score by a specified amount.