Method and apparatus for development and use of a credit score based on spend capacity

Abstract

Share of Wallet (“SOW”) is a modeling approach that utilizes various data sources to provide outputs that describe a consumers spending capability, tradeline history including balance transfers, and balance information. These outputs can be appended to data profiles of customers and prospects and can be utilized to support decisions involving prospecting, new applicant evaluation, and customer management across the lifecycle. A SOW score focusing on a consumer's spending capability can he used in the same manner as a credit bureau score.

What is claimed is: 
     
         1 . A method comprising:
 identifying, by a computer-based system and based on payment data, a balance transfer into at least one of a plurality of accounts, wherein the payment data is related to an individual consumer, wherein the computer-based system is programmed to estimate a purchasing ability of a consumer;   discounting, by the computer-based system, spending in at least one of the plurality of accounts having the identified balance transfer; and   determining, by the computer-based system, a purchasing ability of the individual consumer based on the discounting and a model of consumer spending patterns.   
     
     
         2 . The method of  claim 1 , further comprising estimating, by the computer-based system, credit-related information of the individual consumer. 
     
     
         3 . The method of  claim 1 , further comprising estimating, by the computer-based system, credit-related information of the individual consumer, wherein the credit-related information comprises a spend amount associated with the individual consumer. 
     
     
         4 . The method of  claim 1 , further comprising estimating, by the computer-based system, credit-related information of the individual consumer based on payment data of the individual consumer, a previous balance transfer of the individual consumer, a paydown amount on an account of the individual consumer and the model of consumer spending patterns. 
     
     
         5 . The method of  claim 1 , wherein the determining is further based on the payment data. 
     
     
         6 . The method of  claim 1 , wherein the identifying is for a period of time that is prior to a current period of time. 
     
     
         7 . The method of  claim 1 , wherein the identifying is for at least twelve months prior to a current period of time. 
     
     
         8 . The method of  claim 1 , wherein the discounting is for a portion of a previous period of time. 
     
     
         9 . The method of  claim 1 , wherein the discounting is for one month. 
     
     
         10 . The method  claim 1 , wherein the model is derived from at least one of the payment data, internal customer data and consumer panel data. 
     
     
         11 . The method of  claim 1 , wherein the determining further comprises determining at least two categories of customers, the first category including customers that primarily pay down credit account balances and the second category including customers that primarily revolve credit account balances. 
     
     
         12 . The method of  claim 1 , wherein the determining further comprises assigning one of a first category and a second category to the individual customer based on the payment data, wherein the first category includes customers that primarily pay down credit account balances and the second category includes customers that primarily revolve credit account balances. 
     
     
         13 . The method of  claim 12 , further comprising changing the terms of a credit account of the individual based on estimating credit-related information of the individual consumer and based on the assigning. 
     
     
         14 . The method of  claim 13 , wherein the changing further comprises increasing a credit limit of the credit account. 
     
     
         15 . The method of  claim 14 , wherein the changing further comprises providing a discount on a purchase to the individual consumer. 
     
     
         16 . The method of  claim 1 , further comprising selecting the individual consumer from a set of customers that do not have a delinquent account status. 
     
     
         17 . A system comprising:
 a processor programmed to estimate a purchasing ability of a consumer;   a non-transitory storage memory communicating with the processor;   the non-transitory storage memory having instructions stored thereon that, in response to execution by the processor, cause the processor to perform operations comprising:   identifying, by the processor and based on payment data, a balance transfer into at least one of a plurality of accounts, wherein the payment data is related to an individual consumer;   discounting, by the processor, spending in at least one of the plurality of accounts having the identified balance transfer; and   determining, by the processor, a purchasing ability of the individual consumer based on the discounting and a model of consumer spending patterns.   
     
     
         18 . The system of  claim 1 , further comprising estimating, by the processor, credit-related information of the individual consumer based on payment data of the individual consumer, a previous balance transfer of the individual consumer, a paydown amount on an account of the individual consumer and the model of consumer spending patterns. 
     
     
         19 . The system of  claim 1 , wherein the determining further comprises assigning one of a first category and a second category to the individual customer based on the payment data, wherein the first category includes customers that primarily pay down credit account balances and the second category includes customers that primarily revolve credit account balances. 
     
     
         20 . An article of manufacture including a non-transitory computer readable storage medium having instructions stored thereon that, in response to execution by a computer-based system programmed to estimate a purchasing ability of a consumer, cause the computer-based system to perform operations comprising:
 identifying, by the computer-based system and based on payment data, a balance transfer into at least one of a plurality of accounts, wherein the payment data is related to an individual consumer;   discounting, by the computer-based system, spending in at least one of the plurality of accounts having the identified balance transfer; and   determining, by the computer-based system, a purchasing ability of the individual consumer based on the discounting and a model of consumer spending patterns.