System and method for rapid updating of credit information

• US 7,689,506 B2
• Filed: 06/07/2002
• Issued: 03/30/2010
• Est. Priority Date: 06/07/2001
• Status: Active Grant

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Inventors: Yang, Dong, Hong, Xiao, Fei, Huchen
• Primary Examiner(s): KAZIMI, HANI M
• Application Number:
  US10/163,301
• Publication Number:
  US 20030018549A1
• Time in Patent Office: 2,853 Days
• Field of Search: 705 38- 42
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/14 specially adapted for billing systems
• CPC Class Codes: G06Q 30/0283 Price estimation or determination
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/10 Tax strategies
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

According to one embodiment, the invention relates to a system and method for evaluating the creditworthiness of an account holder of a credit account comprising the steps of determining, at least once a day, whether a first data set relating to the creditworthiness of the account holder has been received from a credit reporting organization; determining, at least once a day, whether a second data set relating to transaction activity of the credit account has been received; periodically receiving from a credit reporting organization a third data set relating to the creditworthiness of the account holder; periodically receiving a fourth data set relating to the historical activity of the credit account; and using the first and second data sets, to the extent they have been received, and the third and fourth data sets to determine a measure of creditworthiness.

Claims

1. A computer implemented method for evaluating current creditworthiness of a current account holder of a credit account comprising the steps of:

determining, by at least one computer processor, at least once a day, whether a first data set relating to the current creditworthiness of the current account holder has been received from a credit reporting organization;

determining, by the at least one computer processor, at least once a day, whether a second data set relating to transaction activity of the credit account has been received;

periodically receiving, by the at least one computer processor, from a credit reporting organization a third data set relating to the creditworthiness of the account holder;

periodically receiving, by the at least one computer processor, a fourth data set relating to the historical activity of the credit account;

using the first and second data sets, by the at least one computer processor, to the extent they have been received, and the third and fourth data sets to determine a measure of creditworthiness;

defining, by the at least one computer processor, a plurality of account holder segments based on at least one characteristic of the account holders; and

defining, by the at least one computer processor, at least one risk model for each of the plurality of account holder segments;

wherein the at least one computer processor is located in at least one computing device, the computing device being communicatively coupled to a network;

wherein determining a subsequent measure of creditworthiness is carried out based on the at least one risk model associated with the plurality of account holder segments by calculating a risk score.

2. The method of claim 1, wherein the third data set is received on a bi-monthly basis, and the fourth data set is received on a monthly basis.

3. The method of claim 1, further comprising the steps of:

evaluating, by the at least one computer processor, at least one parameter in the first, second, third, or fourth data sets to determine whether a triggering event has taken place; and

conditioning the step of determining the measure of creditworthiness on the occurrence of the triggering event.

4. The method of claim 3, wherein the triggering event comprises one of:

(a) a receipt of payment, and (b) a transaction greater than a predetermined amount, or (c) any event reported in the first data set.

5. The method of claim 1, further comprising the steps of:

creating, by the at least one computer processor, an account transactions profile based on the second data set;

creating, by the at least one computer processor, a credit history profile based on the third data set;

creating, by the at least one computer processor, an account history profile based on the fourth data set; and

inputting, by the at least one computer processor, the account transactions profile, the credit history profile, and the account history profile into a scoring engine to determine the measure of creditworthiness.

6. The method of claim 1, further comprising the steps of:

representing, by the at least one computer processor, a plurality of values in the fourth data set as a single value; and

using, by the at least one computer processor, the single value in determining the measure of creditworthiness.

7. The method of claim 6, wherein the step of representing is carried out using a weighted average.

8. A computer implemented system for evaluating current creditworthiness of a current account holder of a credit account comprising:

a computer based network;

at least one server, wherein the at least one server is communicatively coupled to the computer based network and the at least one server comprises;

means for determining, at least once a day, whether a first data set relating to the current creditworthiness of the current account holder has been received from a credit reporting organization;

means for determining, at least once a day, whether a second data set relating to transaction activity of the credit account has been received;

means for periodically receiving from a credit reporting organization a third data set relating to the creditworthiness of the account holder;

means for periodically receiving a fourth data set relating to the historical activity of the credit account;

means for determining a measure of the creditworthiness using the first and second data sets, to the extent they have been received, and the third and fourth data sets;

means for defining a plurality of account holder segments based on at least one characteristic of the account holders; and

means for defining at least one risk model for each of the plurality of account holder segments;

wherein determining a subsequent measure of creditworthiness is carried out based on the at least one risk model associated with the plurality of account holder segments by calculating a risk score.

9. A computer implemented method of determining current creditworthiness of a current account holder comprising the steps of:

receiving, by at least one computer processor, a credit history data set from a credit reporting organization on a periodic basis;

receiving, by the at least one computer processor, an account history data set on a periodic basis;

receiving, by the at least one computer processor, a significant events data set from a credit reporting organization at least once a day;

receiving, by the at least one computer processor, an account transactions data set at least once a day; and

determining, by the at least one computer processor, a measure of creditworthiness based on the credit history data set, the account history data set, the significant events data set, and the account transactions data set;

wherein the at least one computer processor is located in at least one computing device, the computing device being communicatively coupled to a network.

10. A computer implemented method of determining current creditworthiness of a current account holder comprising the steps of:

receiving, by at least one computer processor, a credit history data set from a credit reporting organization on a periodic basis;

receiving, by the at least one computer processor, an account history data set on a periodic basis;

determining, by the at least one computer processor, at least once a day, whether a third data set relating to the creditworthiness of the account holder has been received;

using, by the at least one computer processor, the credit history data set, the account history data set, and the third data set to determine a measure of the creditworthiness of the account holder;

defining, by the at least one computer processor, a plurality of account holder segments based on at least one characteristic of the account holders; and

defining, by the at least one computer processor, at least one risk model for each of the plurality of account holder segments;

wherein the at least one computer processor is located in at least one computing device, the computing device being communicatively coupled to a network;

wherein determining a subsequent measure of creditworthiness is carried out based on the at least one risk model associated with the plurality of account holder segments by calculating a risk score.

11. The method of claim 10, wherein the third data set comprises an account transactions data set.

12. The method of claim 10, wherein the third data set comprises a significant events data set received from a credit reporting organization.

13. A computer implemented method of determining current creditworthiness of a current account holder comprising the steps of:

receiving, by at least one computer processor, a credit history data set from a credit reporting organization on a periodic basis;

receiving, by the at least one computer processor, an account history data set on a periodic basis;

determining, by the at least one computer processor, at least once a day, whether a third data set relating to the creditworthiness of the account holder has been received;

using, by the at least one computer processor, the credit history data set, the account history data set, and the third data set to determine a measure of the creditworthiness of the account holder; and

defining, by the at least one computer processor, at least one risk model that is run on a periodic basis;

wherein the at least one computer processor is located in at least one computing device, the computing device being communicatively coupled to a network;

wherein determining a subsequent measure of creditworthiness is carried out based on the at least one risk model associated by calculating a risk score;

wherein the third data set comprises an account transactions data set; and

wherein the third data set comprises a significant events data set received from a credit reporting organization.