Applying standard income or credit measures to consumers may not differentiate consumers likely to have the means to meet current and future financial obligations.
Financial Durability Measures combine insights to yield a more detailed analysis of a household’s financial resilience and their likelihood of being a desirable customer.
They are based on a model that analyzes the intersection of multiple financial capacity measures to provide an indicator of household financial resilience. Theses financial capacity inputs include:
Affluence derived from an analysis of household spending power and credit utilization
Estimated total household income based on income from wages, assets, business, and retirement funds
Spending power which indicates the discretionary funds available to spend, save, or invest after accounting for fixed expenses of life
Aggregated credit such as credit utilization and delinquencies