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Positive Payment Compliance

The Problem​

The Challenge

Lenders lack tools to assess positive or negative payment compliance:
1️⃣ At the time of the first credit decision.
2️⃣ As borrowing cycles progress.
This gap limits lenders' ability to evaluate customers' current financial behavior accurately.

Consumer Underwriting​

Key Events​

1️⃣ Loan Application

  • First-Time Borrower: Applies online for a payday loan.
  • Credit Score: Poor at 430.
  • Details: Delinquencies on credit types from 12–24 months ago.
  • No new credit reported to the bureau since defaults.

2️⃣ KlearLink Match Found

  • Active Loans: Two payday loans matched.

  • 📅 Loan History:

  • Loan #1: Active for 6 months, 100% positive payment compliance.

  • Loan #2: Active for 3 months, 100% positive payment compliance.

​

Solution​

Clear Visibility with KlearLink

💡 Lenders leverage KlearLink to:

  • Identify borrowers' current loan compliance status.
  • Differentiate between historical credit issues and recent positive payment trends.
  • Gain confidence in assessing borrowers’ credit stack performance.

The Outcome​

Informed Credit Decisions

✔️ The lender gains critical insights:

  • Position in Credit Stack: Becomes payday loan #3 for the borrower.
  • 💪 Positive Performance: Customer demonstrates strong compliance on existing payday loans, despite poor credit history.

Result:​

  • 📈 Confident Approval: The lender extends credit based on the borrower’s recent payment behavior.
  • 🔍 Accurate Risk Assessment: Focus shifts from outdated credit history to current compliance trends.