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My understanding is you have access to total monthly credit usage vs. credit availability, not what I'm spending money on. I would think there's information to
by superuser2 11y ago
My understanding is you have access to total monthly credit usage vs. credit availability, not what I'm spending money on. I would think there's information to be gleaned from whether the distribution of spending across categories looks like a deliberate household budget, whether purchases include luxury items, etc. that would let you spot people likely to bury themselves in credit card debt before they actually do so. Just as people's social networks might tell you about their attitudes towards money when influenced by friends.
- radmuzom 11y agoI have not worked for the US market the last five years, but as far as I remember there is a law in the US that a bank cannot take adverse action on a existing customer holding the bank's product based on credit history from another bank - so for example, my bank cannot decrease the limit of a card because the customer defaulted in a personal loan held with another bank. Of course, at the time of origination of the credit card, we can use this information. The whole point being that just because data is available does not mean I can use it even though it may be statistically significant for me to use it. Again, I am not sure of insurance regulations so there may be a possibility around using more data, if available, in insurance models.