NestEgg’s decision engine now offers unlimited addresses for each credit decision. On average a credit union borrower has moved twice during the last six years. Younger and lower income borrowers moved up to four times over the same period.
Moving away from your credit history
Importantly, credit history doesn’t automatically follow a borrower when they move. Accounts can get ‘left behind’ at earlier addresses. There are a number of reasons for this.
- Credit accounts might be closed at a previous address. Therefore, it is no longer updated, nor linked to a new residency.
- Applicants abscond on a debt, never providing a forwarding address.
- Lender fails to update their records with a new address.
Six years of addresses are required for a complete credit history. Without this past defaults, missed payments and CCJs can get missed.
Typing addresses is a pain
Entering six years of address history is a hassle for a borrower trying to remember the postcode for a flat they lived in four years ago. If they’ve moved around a lot, the length of time it takes to apply for a loan significantly increases. Consequently, the dropout rate rises. Chances are the applicant will either look elsewhere for a loan or won’t bother entering the additional addresses.
A Loan Officer typing in a string of previous addresses into a credit search is a waste of valuable time.
NestEgg makes getting a full credit history really easy
NestEgg supersearch solves these problems.
Furthermore, Credit decision come with unlimited addresses. Addresses are automatically searched. One decision. Unlimited addresses. No extra cost.
Supersearch returns undisclosed and forwarding addresses. This mitigates a number of lending risks.
An applicant is trying to hide missed payments from a previous address. In such a case the applicant only provides their current address. Despite this, NestEgg searches all addresses, finds the missing one(s) then makes a credit decision based on the full credit profile.
An applicant intends to abscond. In these cases, the borrower applies giving their most recent address, but not the one they’ve recently moved to. If any creditor has reported new services at the new address (e.g. gas, electricity or water), this can show as an undeclared forwarding address. Addresses are also brought back if the applicant has requested the Post Office to forward their mail.
NestEgg additionally has a decline rule for first payment defaulters. That is those that have taken the money and run without making a single payment.
The named applicant can also be the victim. For example, when a third party has set up mail forwarding without the applicant’s knowledge. This is often an attempt to intercept mail and carry out identity fraud. Someone is applying by pretending to be the applicant. The forwarding address is shown in this case. Loans Officers should enquire as to whether this address is valid.
NestEgg also provides Bank Owner checks. Accounts to which money is paid into are checked to ensure they matche the declared identity of the applicant.
But in most cases, there isn’t any fraudulent intent. An applicant is simply in a hurry and doesn’t have the time to enter multiple addresses during an online application. Why put them through this hassle, when one address will do?
And there’s more to come
NestEgg provides the go-to decisioning service for responsible lenders. And the decision engine keeps improving. Credit score reasons is just being released.
Next month there’s applicant demographics. Several enhancements are on the way for open banking. And we can’t wait to share where next for unrivalled lending analytics.