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Posted: Thu Nov 03, 2005 7:58 pm
by David A. Szwak

Over the past few years, banks, retailers and finance companies have realized the profits and benefits of revolving credit and credit lines. Added emphasis on increasing accounts has made for more complex credit portfolio management as well as increased risk for creditors. Many institutions either manually review credit files in combination with performance data or use automated portfolio review services to examine the overall risk of an account. Portfolio management services can help reduce credit risks, maximize efficiency and increase revenue.

Readi-Review is a precoded account management product that provides a cost-efficient alternative to custom programmed credit portfolio reviews, without sacrificing flexibility needed to match criteria to a customer’s requirements. Account management refers to activities performed on a credit grantor’s accounts at any point from the time that the accounts are opened to the time that they are closed. These activities usually involve an assessment of future credit risk, including account performance with other creditors, in order to determine the appropriate action based on that risk. Readi-Review can be used once or periodically to review a credit grantor’s accounts. Using precoded criteria selected by the credit grantor, Readi-Review screens for good and/or bad accounts. The product can further define risk by combining it with generic or custom risk models.


Available upon request
The customer can order Readi-Review at any time during the year and use it for one-time or periodic review.

Quick turnaround time
Readi-Review projects are completed within fifteen working days after both the tape and the request form have been received by CMS Production.

Customer tape input
The customer submits a tape of the accounts it wants to review. This gives the customer the option of reviewing only portions or all of the portfolio.

Precoded criteria
Readi-Review is comprised of precoded but flexible criteria which allow customers to make choices within certain criteria levels.

Risk assessment options
Readi-Review can be combined with generic or custom models for maximum risk protection.


Flexible account management tool
The options available with criteria levels allow customers to tailor the product to meet specific custom needs.

Efficient account management
The precoded criteria reduce setup time and eliminate time needed to develop custom criteria.

Manual review minimized
Readi-Review segments accounts by criteria levels which allows customers to pinpoint which accounts they need to review manually.

Payment activity with other credit grantors monitored
Readi-Review incorporates payment activities with other credit grantors, giving the customer an overall picture of how their customers pay all their accounts.

Early warning of problem accounts
Readi-Review uses current credit data to warn if a consumer’s credit is declining, which may result in that account going delinquent.

Risk prediction
Readi-Review can be combined with risk models to predict risk of accounts over time.

A series of components work together to allow Readi-Review to perform as a superior account management tool. The following is a list describing each component.

A risk assessment tool developed jointly by Equifax and Fair, Isaac & Co. to predict the likelihood of a consumer going delinquent within 24 months. BEACON 96, used in conjunction with Readi-Review, segments accounts within criteria levels as well as pinpoints files that may not be credit worthy but fall into an expected criteria level.

Enhanced Delinquency Alert System
A risk assessment tool developed jointly between Equifax and MDS which predicts the likelihood of a consumer going bankrupt or seriously delinquent within 12 months. EDAS can be used in the same manner described above for BEACON 96.

Readi-Review processes all accounts within the portfolio through SAFESCAN, Equifax’s national fraud database, to verify address and Social Security Numbers for fraudulent activity.

Precoded Criteria
Readi-Review offers precoded, yet flexible criteria that allow customers tailor the review. Readi-Review contains 15 criteria levels, with many containing options within each level. Because criteria are precoded, turnaround time and price are reduced.

Tape Output
The criteria or reject code, risk scores and reason codes (if purchased) and SAFESCAN codes are appended to the customer tape.

Statistical Reports
Statistical reports are furnished describing number of accounts in each criteria level, number of rejects, names processed and score matrixes if a model is purchased.