Author Topic: is it possible to get credit score over time?  (Read 612 times)

mikedev10

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is it possible to get credit score over time?
« on: January 13, 2019, 01:31:31 PM »
i see on the api that for a given note in my account, i can get a detailed response - but it only has a trend for the credit (up/down) but not how much.  i see when viewing an individual note in foliofn though that there is the trend chart with monthly captures of the credit score.  can we access that data, either the history of it or the value at a given point in time?  a simple up/down doesn't seem particularly useful.

Fred93

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Re: is it possible to get credit score over time?
« Reply #1 on: January 13, 2019, 02:57:23 PM »
You have noticed one of the bizarre things about the LC secondary market API.  The monthly credit score is available on the web, but not in the API.


Rob L

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Re: is it possible to get credit score over time?
« Reply #2 on: January 13, 2019, 05:29:25 PM »
IIRC the API simple up / down refers to up or down compared with the FICO when the loan was issued; not up or down from the previous month.

mikedev10

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Re: is it possible to get credit score over time?
« Reply #3 on: January 13, 2019, 09:15:50 PM »
that looks correct to me.  not terribly useful

Fred93

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Re: is it possible to get credit score over time?
« Reply #4 on: January 14, 2019, 08:54:37 AM »
A more complete answer to your question...

When deciding whether to buy a note, the credit info is important to me, yet its not provided by the secondary market API.  The credit info is also stale of course, and the only updated info is the credit score, and this too is not provided by the API.

My solution to both these problems was to use data from the loan history files.  I gather these files once a month from LC.  My software reads in the info on all 2 million or so loans and puts it in an in-memory database.  Then each time I read the set of notes presently available on the secondary market, I access the credit info, including the recent credit score from my database, and apply my filter.  This make possible split-second buy decisions on notes shown to me by the secondary market API.

Now you used the words "credit score over time".  The loan history files do contain the most recent credit score, but they do not contain credit scores "over time".  However, there are ways one could get such info.  For example, if one were to download the loan history files every month and extract the most recent credit score, keep them and aggregate those every month, one could build a file which contained credit scores over time for each loan.  I do not do this.  I throw away the old loan history files every month when I read in the new ones.

mikedev10

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Re: is it possible to get credit score over time?
« Reply #5 on: January 14, 2019, 04:51:48 PM »
A more complete answer to your question...

When deciding whether to buy a note, the credit info is important to me, yet its not provided by the secondary market API.  The credit info is also stale of course, and the only updated info is the credit score, and this too is not provided by the API.

My solution to both these problems was to use data from the loan history files.  I gather these files once a month from LC.  My software reads in the info on all 2 million or so loans and puts it in an in-memory database.  Then each time I read the set of notes presently available on the secondary market, I access the credit info, including the recent credit score from my database, and apply my filter.  This make possible split-second buy decisions on notes shown to me by the secondary market API.

Now you used the words "credit score over time".  The loan history files do contain the most recent credit score, but they do not contain credit scores "over time".  However, there are ways one could get such info.  For example, if one were to download the loan history files every month and extract the most recent credit score, keep them and aggregate those every month, one could build a file which contained credit scores over time for each loan.  I do not do this.  I throw away the old loan history files every month when I read in the new ones.

that is neat.  how often are you pinging the api?  what database are you using?  i think i'm using a particularly expensive one at the moment for my config (snowflake) just because i wanted to play with and learn it a bit.

AnilG

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Re: is it possible to get credit score over time?
« Reply #6 on: January 15, 2019, 02:51:19 AM »
You can use payment history files that list updated FICO score every month and create a FICO history for each loan.

IMO, the problem with using loan credit attributes for secondary market is its low relevancy with time. The payment history becomes much more important after few months than the credit attributes at origination. The loan credit attributes are only relevant for first couple of months after loans are issued but you, as secondary market buyer, don't get credit attributes for newly issued loans until quarter ends and LC financial results are reported. The secondary market sellers get access to loan credit attributes as soon as loans are issued to then on primary market through portfolio notes.

IME, Credit Grade, FICO trend and latest and application FICO score and payment history is all you need to decide what seasoned notes to buy from secondary market.

A more complete answer to your question...

When deciding whether to buy a note, the credit info is important to me, yet its not provided by the secondary market API.  The credit info is also stale of course, and the only updated info is the credit score, and this too is not provided by the API.

My solution to both these problems was to use data from the loan history files.  I gather these files once a month from LC.  My software reads in the info on all 2 million or so loans and puts it in an in-memory database.  Then each time I read the set of notes presently available on the secondary market, I access the credit info, including the recent credit score from my database, and apply my filter.  This make possible split-second buy decisions on notes shown to me by the secondary market API.

Now you used the words "credit score over time".  The loan history files do contain the most recent credit score, but they do not contain credit scores "over time".  However, there are ways one could get such info.  For example, if one were to download the loan history files every month and extract the most recent credit score, keep them and aggregate those every month, one could build a file which contained credit scores over time for each loan.  I do not do this.  I throw away the old loan history files every month when I read in the new ones.
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Fred93

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Re: is it possible to get credit score over time?
« Reply #7 on: January 15, 2019, 04:54:32 AM »
IMO, the problem with using loan credit attributes for secondary market is its low relevancy with time.

I've heard this idea before, and I consider it not only unproven but illogical. 

You buy a note on the primary market based on credit attributes.  (Maybe you only go by "grade", but grade is based on the credit attributes!)

Then a "few months" later, you apparently think that the credit attributes at loan origination time have diminished severely in their value, so do you hold those notes, or do you sell them?  I hold them.

If you correlate initial credit attributes (for example credit score or grade or months of credit history or whatever) against default rates in the later months of a loan, you will find them significantly correlated.  Those credit attributes have value for a long time.


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The payment history becomes much more important after few months than the credit attributes at origination.

Think clearly man.  Payment history is ALWAYS important, at every month, including the first.  That's why there are credit scores!  It doesn't become "more important". ...unless you have evidence to say that it does, eh?

The payment failures on LC loans are much more serious than most of the payment failures in a credit history.  The reason for this is the method of payment.  I may be late occasionally on some loan where I make payments manually, and that may simply mean I am sloppy and didn't get around to making the payment.  LC loans use an automated payment mechanism, so when a payment fails it usually means insufficient funds in the account.

We all know how severely the probability of failure changes once an LC loan misses a payment.

I want to be clear.  I'm certainly not against up-to-date information.  I use payment history and recent FICO score, but I also use the original loan attributes, because they have value.