Magazine article American Banker

CreditXpert Pitching Product for Raising Consumers' Scores

Magazine article American Banker

CreditXpert Pitching Product for Raising Consumers' Scores

Article excerpt

A vendor of credit scores and credit-mending technology says its new product, which finds errors in consumers' credit files, can help lenders make more loans and avoid accusations of predatory practices.

CreditXpert Inc. says its Detective software scans credit files for inaccuracies, recommends specific updates to improve a borrower's score, and produces customized dispute letters.

Roughly two-thirds of credit reports have outdated or inaccurate information, the Towson, Md., vendor said. Detective, which will be made available to lenders today, checks for dates of last reporting on loans and outstanding balances to find stale information, such as balances that have already been paid but not reported.

David Chung, CreditXpert's vice president of product development, said the software is especially helpful in an environment of heightened regulatory scrutiny. "If I don't look at your credit to make sure it's correct, and I put you in a subprime mortgage yet you qualify for a prime mortgage, that can be [perceived as] predatory."

Andy Jolls, a vice president at Fair Isaac Corp., which also provides credit repair technology for consumers, agreed with that assessment. "Lenders don't want to not offer somebody a loan that they would be a good candidate for," he said.

Mr. Chung said submitting credit histories to Detective should save lenders two to three hours per mortgage application and help more customers qualify for loans.

"It will enable lenders to take that closer look every time, which they now only do on a need-to-know basis, because it's such a manual process," he said. …

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