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Special Reports
Credit Restoration
Credit Plus Is Seeing More Use of ScoreWizard
'What if' gives alternatives.
By Brad Finkelstein
As mortgage originations shrink, the demand for tools provided by companies like
Credit Plus Inc. here increases.
These tools, such as its ScoreWizard program, are designed to help consumers take the steps necessary to improve
their credit scores.
Items like the "What If" feature on ScoreWizard allows mortgage originators to advise their consumers
on what actions should and should not be taken to improve their score, noted Allen Johnson, vice president of sales
and marketing for Credit Plus.
For example, he said, ScoreWizard could tell a borrower if and how much their credit score would improve if a balance
from a maxed-out card is moved to a less heavily used card.
Because of the way the algorithm was designed by Fair Isaac, some actions, which most believe would help to improve
the credit score, actually harm it.
With tighter lending guidelines, ScoreWizard is a proactive product and valued in the market today. It is a sign
of the times, Mr. Johnson said, that the use of ScoreWizard has quadrupled in recent months. As part of its services,
Credit Plus has a department called Score Plus, which helps loan officers communicate with the repositories to
have incorrect information removed from the borrower's file once everyone agrees on the steps that should be taken.
In anticipation of the growth in use of ScoreWizard, Credit Plus doubled the size of that department, Mr. Johnson
said.
ScoreWizard, he said is a "powerful tool" that helps the loan officer gain the confidence of a customer,
even if the changes in the credit file do not occur as fast as the borrower wants.
The company said loan officers close 30% more loans through the use of ScoreWizard.
Credit Plus is constantly updating ScoreWizard. Among the most recent additions is what Mr. Johnson termed the
"automated" mode. It allows the user to do a quick analysis of the client's credit score without much
data entry.
It requires the Credit Assure product being turned on so data flow into ScoreWizard.
Thus at least the user can take initial steps to help the client, he said.
Among the services that Credit Plus supplies to its client base is continuing education through Credit Plus University,
a free service.
There are twice-weekly, hour-long training sessions offered on line. Among the topics is how to use ScoreWizard,
Mr. Johnson noted. "We're taking a step simply beyond offering top-of-the-line products, technology and service.
We're also ensuring our customers use our resources to the fullest potential. "These online sessions help
them do just that," Mr. Johnson said.
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