The browser you are using is not supported. Please consider using a modern browser.
CreditXpert What-If Simulator – All the actions you can simulate
Transcript from video embedded below:
Hi, everyone. Rosie, here with CreditXpert. Today, I wanted to give you a really brief demonstration of all of the credit management actions you can simulate in the CreditXpert What-If Simulator.
So, we’re just looking at a sample credit profile here in the CreditXpert What-If Simulator. The most common action simulated is a balance change. So, in most cases, a simulation is a balance reduction, right, or paying off that balance. But you can also increase the balance. Maybe your borrowers told you that they went out and bought new furniture for the house that they haven’t yet closed on. So again, that’s a simple balance change. You can also change the high credit. So, in this case, let’s just go ahead and increase that credit limit to $5,000. Since we’re feeling generous, why not make it 15,000?
And similarly, you can simulate a credit limit decrease, which we see a little bit more of right now. Another common action simulated is the removal of a credit record. So, if you hover over any of these records, you’ll see the ability over here on the left with the red X to simulate the removal of that record. So, we could simulate, right, not that we can actually carry all this out.
So, keep in mind the CreditXpert What-If Simulator allows you to simulate just about everything, but whether or not you’ll be able to carry that out is going to be dependent upon you obtaining the correct documentation from the lender or your borrower. So again, simulate the removal of a collection company account, which is a common action that’s done. The removal of an authorized user account is another common action that’s carried out, and we have two of them here. And just removing these two authorized user accounts the forecast is 673. Another action that’s simulated is a removal of an inquiry. So down here at the bottom of our account list, we can see all the inquiries that are reported to this bureau. And just like any other credit record, we can hover over, see the red X and simulate the removal of the inquiry.
Another thing you can simulate is a change in status. So, maybe the borrower is made you aware that this account is now 30 days late, and you’ll see what kind of impact that’s going to have on the score once that reports. So, if there was an account that was currently late, you can simulate bringing that current or to paid as agreed. Similarly, you can simulate a change on a status for say, a public record. Maybe there’s a bankruptcy listed as dismissed, and it should reflect discharged. So, changing the status is a common simulation that’s done in the What-If Simulator.
Let’s take a look here at opening a new account. Now, in this case, you can simulate the addition of just about any new account. So, a credit card is a pretty standard one and the most common one that’s simulated. You can choose the starting credit limit and the starting balance, and then go ahead and add that simulation. It’s going to warn you that you can’t carry that out as a rapid rescore. You’re going to need to change a timeframe to in one month, right, to wait for that to be reported. And that new credit card would expect to score improvement to 639.
Other new accounts you can simulate are the addition of an authorized user account, maybe just another revolving account, auto mortgage, student loans, other installment accounts. So, you can simulate just about any new account here that you might possibly consider. So, let’s go ahead and start over. Another common action that’s done is a removal of a dispute comment. So, we’re going to go ahead at any place that an account is in dispute on this bureau, it’s going to be reflected as disputed, and when you hover over it you’ll have the ability to remove that dispute. Now, in this case, there’s absolutely no impact, but as a lot of you know, in many cases, removing the dispute can have quite a significant impact.
So, removing the dispute, another common action that’s simulated. Authorized users, now, we just previously mentioned, you can simulate the removal of the account. Another way that an authorized user account can be reported is terminated. So, we can go ahead and simulate the termination of an authorized user account. Let’s go ahead and start over. Now, a common action that’s also simulated is simply the impact of time, and this may be in conjunction with other actions or just time in and of itself. So, you have the ability in the What-If Simulator to simulate time in monthly increments, up to one year, and then in two years in total. So, let’s go ahead and just simulate this out into the future for one year. So, this assumes that installment accounts are going to be paid on time, revolving balances won’t change, information is going to continue to age, and your borrower isn’t going to go out and do any other credit management activities that you aren’t reflecting here in your simulation. In one year, they would be expected to have a 653.
Another common action that’s simulated is removal of late payment information. So, there’s cases where especially in a situation where there’s only a single 30 days late where the lender may be willing to make a goodwill adjustment. So, in this example, the Nissan Motor Acceptance has one single 30 days late. We’re going to simulate changing that to paid as agreed. There’s a nice little score improvement to get us over the boundary we’re seeking. Another issue with 30 days late is the borrower may not be a full 30 days late. So, the lender may report it as late, but unless it’s a full 30 days late, it shouldn’t be reflected as such. So, getting documentation and getting that removed, or even if it’s just reporting incorrectly. So you can simulate the removal of late payment information.
So another thing you can simulate is closing an account. So if you hover over any open account, you’re going to see the ability to close here over on the right, and that allows you to simulate that.
So, that covers all the common actions that are simulated in the What-If Simulator, and most other credit management actions can be simulated with a combination of actions. So, if your borrowers telling you that, what would happen if I took this fabulous offer I got in the mail for zero interest and transferred all my credit card debt to this new card? You can simulate paying off all of the credit cards, opening a new account, right, with that new debt, and see what kind of impact that would have. And that applies more commonly to student loans. So in a lot of cases, you’re going to see where multiple student loans are closed out, and there’s one new student loan open for the total amount. Again, you can simulate any combination of actions in the CreditXpert What-If Simulator.
As always, I hope you find this information beneficial. If you have any questions for us, please don’t hesitate to reach out at email@example.com
Every mortgage lead is a loan you can close, even when credit is an issue for your borrower. Watch this video to see all the credit management actions you can simulate in CreditXpert® What-If Simulator™ for a potential way to reach your borrower’s target mid-score.
Related Credit Insights
The enterprise-ready SaaS platform helps mortgage lenders attract more leads, make better offers and close more loans.
We're in a bit of a free fall in the market, and I think lenders are figuring out how to adjust to that. As a result, we're hearing a lot of them talking about how they plan to leverage technology like ours to be more competitive in the market. How can lenders use CreditXpert tools as a strategic growth engine?