Many lenders are already well-aware that borrowers in different states will have vastly different levels of debt and credit scores. Borrowers in Nevada will likely have different spending histories than those living in Iowa, but that does not mean that financial institutions in one area can become lax in how they determine borrowers.
Current and comprehensive loan management software is essential for banks to keep themselves profitable while still finding creditworthy customers. Whether an organization uses just credit history or other payment histories to determine a potential borrower’s financial stability, the right software will ensure the entire lending process runs smoothly.
This blog has recently discussed America’s overall spending habits, but recent research shows which states have the highest debt levels and which could lead the nation in terms of economic recovery.
According to data from Experian-Oliver Wyman Market Intelligence Reports and Experian’s IntelliView tool, Iowa residents have the lowest credit card debt in the second quarter for 2013, averaging $2,904. Alaskans tend to have the highest balance, with an average of $4,706 in that time frame.
Many Americans are working toward eliminating their debt, as they consider living “debt free” the new American Dream, reported a Credit.com survey. Specifically, 23 percent of respondents cited this definition, with 27.9 percent saying that being financially secure at age 65 was the American Dream.
“Once upon a time, the American Dream was owning a home full of thriving, college-bound kids, two cars and little debt,” he said. “Now it appears that for many Americans, the American Dream has changed.”
Even with U.S. borrowers working toward eliminating their debt, it is still important for financial institutions to implement strong lender software that will help them create loan options for quality borrowers.