Image Image Image Image Image Image Image Image Image Image

Peer2Peer Finance News | October 18, 2017

Scroll to top

Top

Equifax adds income analysis to credit criteria

Equifax adds income analysis to credit criteria
Suzie Neuwirth

EQUIFAX, the global credit agency, has added income analysis into its affordability indicators.

The US-headquartered firm, which provides data to a number of peer-to-peer lenders including Flender and Nava, will now incorporate borrower current account turnover information into its analysis.

“The combined insight on a borrower’s income, outstanding debt and credit usage will provide lenders with a clearer understanding of a customer’s capacity to make repayments, and the most appropriate credit terms for a loan,” the company said.

Read more: Half of consumers spend just 20 minutes applying for finance online

This will help lenders address challenges posted by regulatory requirements to identify bad debts and financial vulnerability, Equifax added.

“Assessing a borrower’s capacity to meet their repayments is increasingly vital to protect against over indebtedness,” said Jake Ranson, banking and financial institution expert at Equifax.

“These new creditworthiness and affordability indicators are an important part of our strategy to use new data insights to deliver enriched intelligence to our clients.

“The toolset will assist lenders in meeting their responsibilities to their clients and their regulators, providing a comprehensive picture of a borrower’s financial standing, and a transparent view of signs of credit distress.”

Read more: P2P platforms predicted to shift to hybrid models