What is Cashflow Score?
Cashflow Score is a measure of credit risk based on how money moves into and out of a bank account over time. Instead of relying only on bureau data, it uses transaction-derived signals to assess borrower behavior, financial stability, repayment capacity, and risk. Carrington Labs' Cashflow Score is built from de-identified transaction data and returns a 1–100 score, risk segment, and explainable drivers to support decision transparency and governance.
How is Cashflow Score calculated?
Cashflow Score is calculated by analyzing transaction-derived signals that reflect how an applicant manages money day to day. These signals can include income patterns, spending behavior, liquidity, recurring obligations, balance volatility, and financial recovery. Carrington Labs' Cashflow Score organizes borrower risk signals into five behavioral categories: Velocity, Liquidity, Stability, Leverage, and Resilience. These categories help lenders understand the behaviors influencing the score.
How is Cashflow Score different from a credit score?
A traditional credit score is usually based on bureau data and past credit history. Cashflow Score adds a different lens by looking at current transaction behavior, including income, spending, liquidity, obligations, and balance recovery. That makes it useful as an additional underwriting signal, especially where bureau data is thin, limited, or less predictive for certain segments. Lenders can use Cashflow Score alongside bureau scores, policy rules, and existing risk models to make more informed decisions.
Can Cashflow Score help assess thin-file borrowers?
Yes. Cashflow Score can be especially useful for thin-file or no-file borrowers, or where bureau coverage is limited. Because it is based on transaction data rather than only traditional credit history, it can give lenders a broader view of borrower behavior and repayment capacity. Cashflow Score helps lenders identify applicants who may be stronger than their credit file suggests, while still supporting risk controls and explainability.
Why do lenders use Cashflow Score?
Lenders use Cashflow Score to improve risk separation, reduce false declines, and make faster, more consistent credit decisions. It adds a current cash flow lens to underwriting by helping lenders understand borrower behavior across income, spending, obligations, liquidity, and resilience. It is designed to support lender judgment, not replace it. Lenders remain in control of policy, cutoffs, approvals, declines, referrals, and customer treatment.
What data does Cashflow Score use?
It's built from de-identified bank account and transaction data, and works with customer-permissioned (open banking) data. No personally identifiable information is required.
Can we use it alongside our bureau score and existing models?
Yes. It's designed to complement bureau scores, policy rules, and existing risk models — you keep full control of cutoffs and decisions.
How is Cashflow Score delivered?
Via API or batch, returning a 1–100 score, a risk segment, and explainable drivers that drop into your existing decisioning.
Is it explainable enough for governance and adverse action?
Yes. Drivers are organized into clear behavioral categories, so credit teams can understand, govern, and communicate what's driving a score.
Can we get a model personalized to our portfolio?
Cashflow Score is a pre-tuned, ready-to-use score. If you want a model personalized to your own portfolio, products, and objectives, that's the Credit Risk Model — it can be built on transaction data, or on bureau, application, and internal performance data when transaction data isn't available.
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