As a lender, have you ever wondered what your customers are doing after they sign on the dotted line? Consumer behavior in the days following a loan transaction can contribute to a lender’s success or failure. Don’t believe it? Consider this:
23 percent of consumers have a new credit inquiry within 30 days of opening a loan. An even higher number, 31 percent, will open a new loan with a different lender while still paying on an existing loan – a clear loan stacking threat.
This isn’t good news for lenders, and until now, there was nothing you could do to manage risk once the loan was approved. To help you take charge of your risk management and actively monitor your portfolio, Clarity introduced Clear Portfolio Alerts™.
How to Use Portfolio Alerts in Subprime Lending
It works like this: As a lender, you can customize the types of alerts you want to receive for your customers, as well as how often to receive them (daily, weekly, or monthly). By monitoring customer behavior, you can gauge your risk and decide if and when to take action, as well as the most appropriate type of engagement for the situation.
If a consumer appears to be shopping for a new loan, you can choose to reach out and offer timely solutions. It also gives you the opportunity to intervene if you see customers who might be at risk of overextending themselves. A charge-off alert suggests that the consumer is 136 percent more likely to have their loan reach default status. This type of warning is incredibly valuable to help minimize risk.
Protect your portfolio from losing value. Clear Portfolio Alerts™ does the work for you and the results speak for themselves. Over the course of 90 days, the average person triggers five alerts. Any one of them could help you prepare for an impending default or possibly prevent one altogether.
*Statistics provided are from internal Clarity data.