The financial industry is tasked with assisting individuals obtain financing for consumer goods. Lenders need to be able to document to underwriters that the individual’s credit history warrants extending them credit. The problem faced by lenders is that 35 to 54 million Americans lack sufficient credit data in their files to access credit.
The lending industry needs alternative solutions in order to qualify individuals. Scoring tax returns has the advantage by using readily available information that is already familiar to lenders
Scoring tax return performs 37 diagnostic tests and identifies high risk activities such as; bankruptcy, gambling, identify theft and tax delinquencies. If a lender is unaware of tax delinquencies and the IRS cleans the borrower’s potentially has a big problem on their hands. Tax scoring is a great way of reducing identifying risk before funding has every occurred.