Reply
Senior Contributor
Posts: 3,528
Registered: ‎01-19-2009
0

Income on credit card CRA a new way to validate?

The other day I got an email from my employer allowing me to op in to Equaifax W2 Managemnt, I have not yet done so however I did notice that experian has a semilar product available to credit card companies called Income Insight W2, I am wondering is this just a new way to validate income ?

 

Here is a link on the news release from experian

http://www.prnewswire.com/news-releases/experian-offers-income-insight-w2sm-for-assessing-individual...

 

Kind of scary all the information available

Valued Contributor
Posts: 1,265
Registered: ‎09-14-2012
0

Re: Income on credit card CRA a new way to validate?

I don't see any way that this can come out accurate. 

 

Take for instance:

 

My father, 60 Year old man.  Total revolving credit lines is about $12k, student loans of about $10k 2 car loans and a $320k mortgage.  Income: $250k annually

 

Myself, 30 year old man.  Total revolving credit lines is about $85k, no student loans, 2 car loans and $307k mortgage.  Income: $135k annually

 

How is someone going to estimate income for either one that would be anywhere near accurate?

Never take credit personally

Amex BCP $24,900; Chase Sapphire Preferred $24,200; Chase Marriott $20,000; Discover It $12,500; Chase Ink Cash $15,000; Chase Slate $13,500; Citi TYP $12,900; Capital One Venture $15,000; Amex SPG Biz $3,000; DCU Visa $10,000; Logix FCU $15,000; Citi Home Depot $8,800; Lowes $8,000; Care Credit $6,000; Penfed Platinum Sig $16,000; Barclay Arrival Plus WEMC $15,000; US Bank PLOC Overdraft $1,500; US Bank Perks+ Visa Signature $8,600; US Bank Edge Rewards Business $10,000; PenFed PLOC $5,000

Valued Contributor
Posts: 1,673
Registered: ‎11-11-2012
0

Re: Income on credit card CRA a new way to validate?


sccredit wrote:

I don't see any way that this can come out accurate. 

 

Take for instance:

 

My father, 60 Year old man.  Total revolving credit lines is about $12k, student loans of about $10k 2 car loans and a $320k mortgage.  Income: $250k annually

 

Myself, 30 year old man.  Total revolving credit lines is about $85k, no student loans, 2 car loans and $307k mortgage.  Income: $135k annually

 

How is someone going to estimate income for either one that would be anywhere near accurate?


Because this is (statistical) data mining.   So with X% certainty, individuals with the following credit report characteristics, have income between $Y and $Z


They don't need a causal model, as the release said (uniquely developed from a deep database of verified income and built on proprietary credit attributes), they use a set of accurate income data and derive patterns based on the corresponding credit report.   So, if you and your father are not outliers, it maybe able to predict quite accurately, just because there are other people like you.

 

Now, it might be that outliers are the ones credit card companies need to be most aware of!

Senior Contributor
Posts: 3,528
Registered: ‎01-19-2009
0

Re: Income on credit card CRA a new way to validate?

using verified income, could they be getting that information from when people apply for mortgages and income has to be verified for example?

 

Frequent Contributor
Posts: 496
Registered: ‎11-13-2012
0

Re: Income on credit card CRA a new way to validate?


bs6054 wrote:

Now, it might be that outliers are the ones credit card companies need to be most aware of!


I just reset to a bad semester in 1996.


GangnamFICO wrote:

Because the chicks dig it when I throw down the card to the waiter and...it comes in handy if I'm short on cash until payday and need a short spot. AMEX gets the booty, and that's important when you're a Pirate.


Minor vulgarity edit --Rev



Valued Contributor
Posts: 1,914
Registered: ‎11-17-2012
0

Re: Income on credit card CRA a new way to validate?

Im feeling ya John...i just finished taking not one, but two stats/numerical methods courses this past semester XD
Capital One Quicksilver World Mastercard $20k | JCPenney Gold $10k | Shell Drive for Five $800 | Chase Freedom Visa Signature $9.8k | TD Bank Easy Rewards Visa Signature $5k | Chase Sapphire Visa Signature $10k | American Express Blue Sky $13.7k | Discover IT $14.5k | SavingStar American Express $14.8k | American Express BCE $11.3k

FICOS: EX 756 EQ 735 TU 747 VantageScore 3.0: EX 741 EQ 748 TU 747 Credit Sesame (EX) 753 Credit.com (EX) 780 CapOne (TU) 787 Quizzle (EQ) 749
Valued Contributor
Posts: 1,673
Registered: ‎11-11-2012
0

Re: Income on credit card CRA a new way to validate?


jake619 wrote:

bs6054 wrote:

Now, it might be that outliers are the ones credit card companies need to be most aware of!


I just reset to a bad semester in 1996.


Oh, you're THAT Jake.  Sitting up back, yawning, listening to Black Sabbath and Abba on your Walkman, during my seminar "Really Interesting Details of Statistical Analysis in 13th Century Flemish Lace Design"

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.