How can credit reporting software help lenders and brokers?
Giving out loans to customers can be a stressful process if you don’t have the right tools in your belt, especially while you’re trying to minimize your risk as a lender. Fortunately, the technology behind credit reporting software has grown and improved over the past several years, making it possible for you to streamline this decision-making process.
What is credit reporting software?
Credit reporting software helps lenders determine how much to loan a prospective customer or whether that person is even qualified to take out a loan. This software can provide you the data and information you need to mitigate your risk for lending to a customer, with a detailed credit history, to help give you the confidence you need to make good decisions for your business.
Benefits of utilizing credit reporting software
If you aren’t using some kind of credit reporting software to help you prequalify your customers for loans, then you might think about considering your process. Credit reporting software can give you the peace of mind you need when making important sales decisions and save your business money in the long run. Check out these benefits credit reporting software can provide your company.
Full-file reporting
Not only does credit reporting software increase economic activity, but it benefits both lenders and consumers. Full-file reporting is the preferred method to match loans with borrowers because it provides comprehensive detail on their credit history, including information such as:
- Payment history
- Contact information
- Consumer stability data
- Employment and income data
- Bankruptcies, liens, and judgements
- Accounts types
- And more
Learn more about the alternative credit data that Soft Pull Solutions credit reports can provide.
Risk assessment
When you use credit reporting software to prequalify customers for financing, your risk of lending to that customer decreases because you get the data you need to make an informed decision. Understanding a customer’s credit history and seeing proof of their financial stability (or lack thereof) will help you provide lower-risk loans, meaning less time spent with collections agencies and quicker payback of your money.
Growth for your business
Credit reporting software helps small businesses to grow because of its ability to create comprehensive reports. It all comes back to the bottom line, and when you can lower your risk by providing only the most qualified customers with financing, your business has that much more potential for growth.
Why you should use a private credit reporting agency
Many lenders and brokers use private credit reporting agencies that are familiar with credit reporting software and you should too.
Private agencies share consumer data that’s both positive and negative, giving lenders a full picture of their customer’s credit status. They also provide data with variation. Privately owned credit reporting companies have a history of giving a more concise and extensive credit history reports.
Private agencies also provide a wider credit history, sharing data from five years back or further. And they collect data towards loans that gross above 1% per capita, further extending the information needed to prequalify your customers for loans.
If you have any questions about credit reporting software or you’re looking for a private company to help you pre-qualify customers for financing, give Soft Pull Solutions a call today.