Equifax adds income analysis to credit criteria
EQUIFAX, the global credit agency, has added income analysis into its affordability indicators.
“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.
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.”