Financial Scoring

The SPENDiD Financial Scoring service uses behavioral modeling to create two index values plus a numerical Predicted Saving Ability (monthly). Each index is built initially with 0 as the mid-point or exactly equal to the estimated Peer Average. These index values can be modified to a preferred scoring metric for any given application's use case by adding to or "factoring" the index value to meet the application's preferred presentation scale.

We'll detail each score and use cases in the guide.

curl --request POST \
  --url https://api.spendid.io/v1.0/scores/generate \
  --header 'accept: application/json' \
  --header 'content-type: application/json' \
  --header 'x-api-key: your_api_key' \
  --data '
  {
    "demographics": {
    "age": 25,
    "gross_annual_income": 56376,
    "household_members": 1,
    "is_homeowner": false,
    "net_annual_income": 42000,
    "zip": "35210"
    },
    "budget": {
        "mortgage_and_rent": 6000,
        "vehicle_purchase_and_lease": 3000,
        "savings": 2000,
        "health_insurance": 0,
        "other_debt_payments": 0
    }
 }'
{
  "demographics": {
    "age": 25,
    "gross_annual_income": 56376,
    "household_members": 1,
    "is_homeowner": false,
    "net_annual_income": 42000,
    "zip": "35210"
  },
  "budget": {
    "mortgage_and_rent": 6000,
    "vehicle_purchase_and_lease": 3000,
    "savings": 2000
    "health_insurance": 0,
    "other_debt_payments": 0
  }
}
{
  "Predicted Saving Ability": "565"
  "SPENDiD": "96.1",
  "SAViNGS": "91.4"
}

Predicted Saving Ability (PSA)

SPENDiD can determine a User’s Predicted Saving Ability (PSA) based on their simple Demographic and known Fixed Expense inputs. A higher SPENDiD Score will result in a larger PSA, while a lower SPENDiD Score might even result in a negative PSA amount. This Predicted Saving Ability can serve as motivation and a benchmark for greater savings achievement and/or expense reduction. The PSA amount may also be useful as a secondary lending qualification metric indicating an applicant's relative ability to pay based on their current cash flow health. This can be useful in situations of "thin credit file" applicants, or those with borderline traditional credit scores.

SPENDiD Score

The User’s SPENDiD Score is a predictive metric indicating the User's ability to meet their Fixed Expense obligations, plus all other peer-modeled expenses based on their Demographic profile, and still "BREAKEVEN" on a cash flow basis during an average month. This is made possible by the User’s Demographic profile, Take-Home Income, and any known Fixed Expense inputs which commonly include categories such as Mortgage/Rent, Vehicle Payments, and Other Monthly Debt Payments, or other legally required payments such as alimony, child support, tax estimates, etc... SPENDiD achieves this scoring metric by comparing the User's provided demographic and major fixed expense information, plus any other personalization made to other spending categories, against proven spending and saving behavioral models of similar peers. SPENDiD Scores are calculated on a "Zero as mid-point" scale. If a given User's PSA is positive this will yield a positive SPENDiD Score, with the opposite being true for a negative PSA. Developers can easily convert this scale to a 0-100 range by adding a preferred fixed amount to the API calculated SPENDiD Scores. For example, if a developer wants the mid-point amount to be 50 instead of zero, simply add 50 to all API calculated SPENDiD Scores.

SAViNGS Score

SAViNGS Score is calculated in the same manner as the SPENDiD Score with one exception: The User's input amount for targeted periodic savings is included as a Fixed Expense to yield a predictive metric of that User's relative ability to achieve their targeted periodic savings amount.


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