System and method for helping consumers understand and interpret credit scores

• US 20060218067A1
• Filed: 02/27/2006
• Published: 09/28/2006
• Est. Priority Date: 02/22/2001
• Status: Active Grant

• Current Assignee: Fair Isaac Corporation
• Original Assignee: Fair Isaac Corporation
• Inventors: Steele, Michael Scott
• Granted Patent: US 7,711,635 B2
• Time in Patent Office: Days
• US Class Current: 705/35
• 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

Abstract

A system and method is provided that provides tools to consumers to help consumers understand their credit scores and how to take action to improve their credit scores. A system and method for each of and for a combination of a score estimating tool, a best action simulation tool, an easy error correction tool, and a score improvement tool are provided.

Claims

1. A computer implemented method for determining a best action simulation, comprising the steps of:

using one or more credit reports to generate a credit score;

using data from said credit score and data from said one or more credit bureau reports in a simulation program;

using said simulation program in a iterative fashion to generate an action with each iteration; and

determining a best action from said actions of each iteration.

2. The method of claim 1, wherein said simulation program is run using a set of simulations, the simulations of which are in a predetermined order based on a predetermined strategy.

3. The method of claim 1, wherein said simulation program is run using a particular set of simulations per each particular credit bureau report.

4. The method of claim 1, further comprising the step of:

determining a set of cumulative simulations.

5. The method of claim 1, further comprising:

graphing a set of simulations that encompass several actions over a period of time.

6. The method of claim 1, wherein said credit score is derived from the computer implemented method for estimating a credit score as that in claim 9.

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

helping a consumer realize an action plan to improve said credit score as in claim 28.

8. The method of claim 1, further comprising the step of:

aiding the finding and disputing of errors on said credit report as in claim 18.

15. The method of claim 9, further comprising the step of:

using said estimated credit score in find a best action simulation as in claim 1.

25. The method of claim 18, further comprising the step of:

determining a best action simulation as in claim 1.

31. The method of claim 28, further comprising the step of:

also finding a best action simulation as in claim 1 for said consumer.

9. A computer implemented method for estimating a credit score for a consumer that gives the consumer an idea of the consumer'"'"'s credit health, comprising the steps of:

distributing to a partner site one or more files, corresponding to a score estimator tool, for integration into a partner'"'"'s web site;

hosting one or more other files on a host server, wherein said one or more hosted files are referenced by said distributed one or more files on said partner'"'"'s web site;

wherein said one or more files on said partner site can be modified as desired by the partner to fit the partner'"'"'s web site look and feel; and

wherein said one or more hosted files comprise calculating code and wherein said calculating code can be updated on the host without requiring redistributing the updates to the partner'"'"'s web site.

10. The method of claim 9, wherein said score estimator tool can be run many times by a single participant.

11. The method of claim 9, wherein said score estimator tool comprises a series of multiple-choice questions.

12. The method of claim 9, wherein said score estimator tool produces a score range within which a consumer'"'"'s score is most likely to be.

13. The method of claim 9, wherein said score estimator tool provides a results web page wherein the layout of the page can be designed by the partner and other controls of the appearance is designed by the host.

14. The method of claim 9, wherein said score estimator tool comprises the steps of:

generating a score estimator characteristics;

generating months since oldest date opened;

determining exclusion code;

determining estimator score algorithm identifier;

calculating interim estimator score;

calculating final estimator score; and

calculating estimator score range amounts.

18. A computer implemented method for aiding the finding and disputing of errors on a consumer'"'"'s credit report, comprising the steps of:

providing customized advice, based on a credit report, on what mistakes to look for;

if mistakes are determined, following up by providing questions related to determining what is the correct information to provide to the corresponding credit bureau; and

based on data from answers to said questions and data from said credit report, composing a dispute letter to remit to the credit bureau to request the incorrect data be corrected.

17. The method of claim 9, further comprising the step of:

aiding the finding and disputing of errors on said credit report as in claim 18.

19. The method of claim 18, further comprising the step of:

obtaining said credit report from said corresponding credit bureau based on providing said credit bureau identifying information.

20. The method of claim 19, wherein said credit report can be obtained in raw format from any bureau and wherein a consolidating component transforms said raw format from any bureau into a standard usable format used in a same user interface independent of from which bureau the credit card was obtained.

21. The method of claim 18, further comprising the step of:

applying rules to detect and indicate certain information on said credit report as being worthy of dispute or correction.

22. The method of claim 18, further comprising the step of:

using appropriate graphical user interface objects to make it easy to answer said questions.

23. The method of claim 18, further comprising the step of:

using the incorrect information from the credit report, using answers to questions, and using any correct information provided to compose said dispute letter.

24. The method of claim 18, further comprising the step of:

providing access to old dispute letters.

26. The method of claim 18, further comprising the step of:

helping a consumer realize an action plan to improve said credit score as in claim 28.

27. The method of claim 18, further comprising the step of:

deriving an estimated credit score as in claim 9.

33. The method of claim 28, further comprising the step of:

aiding the finding and disputing of errors on said credit report as in claim 18.

28. A method for helping a consumer realize an action plan to improve the consumer'"'"'s credit score, comprising the steps of:

obtaining a credit report for a consumer;

inputting certain data from said credit report into an algorithm;

said algorithm generating a list of action plans; and

determining an action plan for said consumer based on said generated list of action plans.

16. The method of claim 9, further comprising the step of:

helping a consumer realize an action plan to improve said estimated credit score as in claim 28.

29. The method of claim 28, wherein determining said action plan comprises the step of:

determining which action plans to display and in which order.

30. The method of claim 28, said algorithm comprising the steps of:

taking negative reason codes from each of one or more most recent credit reports;

looking up an action plan appropriate for each reason code from each bureau;

summing up a number of times each action plan is called for by the occurrence of a negative reason code for a certain credit bureau;

multiplying said sum by a predetermined weight for said action plan wherein the product represents a certain importance of said action plan;

listing every action plan that is indicated in a particular predetermined order based on said certain importance.

32. The method of claim 28, further comprising the step of:

using said score estimator tool as in claim 9.

34. A system on a computer network for determining a best action simulation, comprising:

means for using one or more credit reports to generate a credit score;

means for using data from said credit score and data from said one or more credit bureau reports in a simulation program;

means for using said simulation program in a iterative fashion to generate an action with each iteration; and

means for determining a best action from said actions of each iteration.

35. A system on a computer network for estimating a credit score for a consumer that gives the consumer an idea of the consumer'"'"'s credit health, comprising:

means for distributing to a partner site one or more files, corresponding to a score estimator tool, for integration into a partner'"'"'s web site;

means for hosting one or more other files on a host server, wherein said one or more hosted files are referenced by said distributed one or more files on said partner'"'"'s web site;

wherein said one or more files on said partner site can be modified as desired by the partner to fit the partner'"'"'s web site look and feel; and

wherein said one or more hosted files comprise calculating code and wherein said calculating code can be updated on the host without requiring redistributing the updates to the partner'"'"'s web site.

36. A system on a computer network for aiding the finding and disputing of errors on a consumer'"'"'s credit report, comprising:

customized advice, based on a credit report, on what mistakes to look for;

if mistakes are determined, means for following up by providing questions related to determining what is the correct information to provide to the corresponding credit bureau; and

based on data from answers to said questions and data from said credit report, means for composing a dispute letter to remit to the credit bureau to request the incorrect data be corrected.

37. A system on a computer network for helping a consumer realize an action plan to improve the consumer'"'"'s credit score, comprising:

means for obtaining a credit report for a consumer;

means for inputting certain data from said credit report into an algorithm;

means for said algorithm generating a list of action plans; and

means for determining an action plan for said consumer based on said generated list of action plans.