Why a Credit Scoring App is a Must-Have
January 25, 2021
CredoLab's Chief Data Scientist on How Banks and Consumer Lenders Can Leverage Data Analytics for Business and Social Impact
Why a credit scoring app is a must-have
With our smartphones all but tethered to our bodies these days, it’s a given that mobile apps have earned a sure spot in our daily lives. Indeed, there seems to be an app for everything these days, including ones that help us out with our finances.
Typically, finance apps are those that help track expenses or pick out the best possible investment. Yet another must-have on your phone is a credit scoring app.
There are a number of reasons why.
Checking your credit score helps manage debt
Your credit score is a ready and easy to understand snapshot of your financial standing. By easily viewing whether your credit score has gone up or down, it will be easy to see if your debt is getting out of hand.
With the added convenience of it being just a few buttons away on your phone, a credit scoring app is a foolproof way of always keeping your finances in mind.
Keep track of who’s viewed your credit score
An inquiry into your credit score is usually done by a lender, whenever you’ve applied for any type of loan. Inquiries then lower your credit score a few points or so, with the assumption that a lender wanting to see your credit score means you’ve taken out a new loan.
Yet this can also be a handy tool to see who’s evaluating your finances, and seeing whether that loan could push through.
Get analytical data on your financial history
A credit scoring app can tell you when you’ve historically reached financial lows and you hit your peak. Are you prone to taking out loans in the holiday season? More frugal at the start of the year? A credit scoring app can give you the info and let you adjust your lifestyle accordingly.
Up your chances of a loan
Some credit scoring apps function as a proxy for previous credit history or other transactional data. This is because some apps use anonymized data such as numbers of files in emails, number of contacts and mobile apps, and the amount of data a mobile user consumes as the base for building a user profile. For the unbanked, it’s a valuable opportunity to assuage any lender’s qualms about their ability to repay loans.
The use of credit scoring apps as alternative data even helps cut down on the time needed to approve a loan, a positive for both borrower and lender.
Some apps come with free financial advice
There are times when a credit scoring app does more than just its original purpose. Some apps even point out ways you can cut back on debt or give tips on which investments may be right for you. Thus, one app truly gives you all the tools you need to move towards financial freedom.
With phone storage that compromises mobile games and/or social media, there are simply too many financial benefits not to leave space for a credit scoring app.
(*I’ve added the part below to conclude the article. I also wanted to include in the keyword : AI credit scoring.)
Using our AI credit scoring platform, CredoLab develops highly-accurate real time bank-grade digital credit scorecards from opt-in smartphone metadata. Click here to find out more about how CredoApp works and how you can get it downloaded on your phones!