A Credit Migration Alert is one of the available monitoring alert types available in Database Monitoring Alerts. So what is credit migration and what does it mean to an originator?
A Credit Migration Alert is an alert that a consumer or past credit denial in your database has had a significant enough improvement in their credit that they now meet the minimum credit requirements established by your organization.
How to use credit migration alerts.
Credit migration is best used for monitoring prospective clients that you have turned down for credit when they applied with you in the past. After being turned down for credit most consumer will go to work on resolving any issues in their credit that is preventing them from purchasing a new home. For the consumer this may be as simple as paying off high balance credit cards, getting an items removed from credit that doesn't belong to them, or simply waiting a month for changes that they have recently made to show up on their credit report. For others this may mean waiting until a bankruptcy has been completed and discharged for 2 years. Whatever it is that the consumer needs to do to become eligible for financing, you can now be notified promptly when those improvements are reflected in their credit report and FICO score so that you can reach out and get them back in the process of getting pre-qualified.
The best practice is to add consumers to your MonitorBase account and activate credit migration monitoring for anyone you turn down for credit. Doing this regularly will ensure that you don't miss a credit migration opportunity.