A U.S. bank is getting into the credit scoring game and offering customers a way to get better credit scores by using a computer algorithm that can spot fraudulent activity.
The Chase Sapphire Reserve has a system called “BackedScore” that identifies and penalizes bad accounts by looking for patterns in how the account is used and how much money is withdrawn.
It has been in use for about six months and can identify and penalize fraud at up to $200,000 in a year, said the bank.
The credit bureau is also offering customers $25 credit for each $1 in debit card balances over $10,000.
The credit card payments can be made to the card issuer or a third party.
The bank’s CEO, David Rachman, said he was “very excited” about the system and wanted to provide consumers with a “better credit score.”
The bank has about 2.3 million cards and has more than 1.3 billion account balances, according to Rachmans website.
“The bank will be working with customers to make the system even more accurate and more comprehensive, so that customers have more options for managing their creditworthiness,” he said.
“We believe in being transparent and providing a free and easy way to improve your credit score.
This new credit score model is a great example of that,” he added.
Credit bureau CEO David Racheman.
Credit: Chase ChaseThe company has been testing the system in limited settings in Kansas City and Kansas City, Mo.
It also offered an online tool in September that can help consumers set up an account, review their credit history, and apply for a loan.
The new credit scores also are a sign of how much the bank is growing and expanding its customer base.
The latest update comes on the heels of the announcement by the U.K. government that it will start accepting new credit cards.