RealCheck, a free credit affordability checking service designed by Realrates.com, has embraced Open Banking to help consumers understand what they can afford to borrow and increase their chances of being accepted.
“In this challenging environment where lenders are looking very carefully at a borrower’s income and spending to make lending decisions it’s important that consumers understand what they can afford to borrow before they apply.” says Adair Cameron, Product Director at Realrates.com
AccountScore offers deep insight into customer affordability, based on transactional-level data, in a highly automated fashion using a number of advanced transaction modelling processes. Through this, RealCheck is able to instantly analyse customer’s income and expenditure and inform the customer what they can afford to borrow. These inputs enable RealCheck to match the customer to the best providers based on the customer’s likelihood to be accepted.
RealCheck will use the AccountScore platform in order to instantly verify a consumer’s income and expenditure, splitting between essential and discretionary expenditure to understand a consumer’s true disposable income. Using this, they will ensure that all potential borrowing is within a consumer’s means.
“Affordability is one of the key measures a lender uses when assessing your credit worthiness and it’s just as important as your credit score. That’s why RealCheck uses information about your income and expenditure to help you self-assess your own borrowing capability before you apply. We use Open Banking because it’s the quickest and most accurate way to get your income and spending information required to assess your affordability.”
Emma Steeley, CEO, AccountScore, commented on the new partnership, “We very much look forward to working with Realrates.com to help more individuals understand what they can afford to borrow before they apply for a loan. This will undoubtedly enable more consumers faster access to better deals, whilst ensuring responsible lending.”