Firm Credit Offers via Soft Inquiry System
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Solution Overview
Problem
Consumers face difficulties in obtaining credit as they are not guaranteed to receive credit after applying, leading to negative impacts on their credit history from multiple hard credit inquiries, and they lack proactive access to preapproved credit offers from various issuers.
Innovation Solution
A computer-implemented method and system that allows consumers to receive firm offers of credit by performing soft credit inquiries, comparing results against multiple credit issuers, and providing preapproved credit offers through a network, without negatively impacting their credit history.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If consumers apply for credit by submitting hard credit inquiries to multiple credit issuers, then they may receive credit offers, but their credit history is negatively impacted and creditworthiness decreases
Solution Approach 1:
The system performs preliminary credit assessments and generates preapproved offers before consumers formally apply for credit. By conducting soft inquiries in advance and pre-approving consumers based on their credit profiles, the system eliminates the need for multiple hard inquiries, thus preventing negative impacts on credit history while ensuring consumers receive guaranteed credit offers.
Solution Approach 2:
The patent introduces a credit reporting agency as an intermediary that consolidates credit assessments and distributes preapproved offers from multiple credit issuers. This intermediary enables consumers to receive multiple credit offers through a single soft inquiry rather than submitting separate hard inquiries to each issuer, thereby protecting credit history while maintaining access to multiple credit opportunities.
2Adaptability or versatility
If consumers receive preapproved credit offers via mail from credit issuers, then they have credit offers available, but they cannot proactively obtain offers or compare multiple offers from different issuers
Solution Approach 1:
The patent replaces the traditional mechanical mail delivery system with an electronic digital platform. Consumers can proactively access preapproved credit offers through a website or other electronic interface at any time, eliminating the delays associated with mail delivery. The system allows consumers to immediately view, compare, and select from multiple preapproved offers from different credit issuers without waiting for physical mail arrival.
3Reliability
If consumers have no credit history, then they may be denied credit by traditional methods, but they need access to credit opportunities
Solution Approach 1:
The system applies partial credit assessment by using soft inquiries that evaluate creditworthiness without requiring extensive credit history. Instead of demanding full credit histories, the system performs limited assessments that can identify creditworthy consumers even with minimal credit records, thereby providing access to credit opportunities for consumers who would otherwise be denied by traditional full-history review methods.
Data Source
AI summary
A computer-implemented method for providing firm offers of credit to a consumer includes receiving consumer information from a consumer via a network, receiving a selection via the network from the consumer to permit at least one soft credit inquiry of the consumer's credit record, submitting a soft credit inquiry to a credit reporting agency, the soft credit inquiry based on the consumer information, receiving at least one firm offer of credit from the credit reporting agency, the firm offer of credit resulting from the credit reporting agency performing the soft credit inquiry on the consumer's credit record, each firm offer of credit provided by a credit issuer; and providing the at least one firm offer of credit to the consumer via the network.