Salad Money Credit Where Its Due Report WEB SINGLES - Flipbook - Page 6
METHODOLOGY
Salad provided the CRA with customer records
covering all previously funded loans (as at the
end of October 2022) and a random sample
of recent applications. This file of 50,000 loan
records was divided into three key cohorts:
Segment
Number of records
a. All Salad Money disbursed loans
29,405
b. All eligibility pre-screen passes from the previous
28 days, excluding any already in segment a
5,638
c. Random sample of eligibility pre-screen fails
from the previous 28 days
14,957
TOTAL
50,000
The CRA was requested to provide a
retrospective view (also referred to as a ‘retro’)
of the customer’s credit file at the point they
applied for a loan with Salad.
We commissioned (and paid) the CRA to provide
the retrospective data files for analysis.
The CRA returned multiple files containing more
than 2,750 data points for each customer.
KEY FINDINGS
Since Salad Money has never previously performed a CRA check for its customers, our priority was
to understand the type of credit data held by the CRA and how this differed between accepted and
declined customers. The headlines from this initial review were:
• More than 10% of Salad customers do not
have a credit score.
• Customers with no credit score perform no
worse than a typical Salad customer.
• CRA data is a weak indicator of vulnerability
indicators such as gambling (we have also
covered how credit exacerbates problem
gambling in our February 2023 report,
Harmful Gambling10).
• CRA score is no better at identifying risk
than Crouton (our own, internally developed
machine learning system, see page 10).
10
https://www.saladmoney.co.uk/news/salad-moneyrelease-report-into-harmful-gambling-in-2023
6
Credit Where It’s Due
