A) Underwriting that actually predicts payback
Gate bank connect up front. If the applicant declines, either cap at $300 with short terms or decline. Then decide
amount, term, and billing from live signals:
Five bank-data features you can compute from any IFV feed
Recurring Income Fidelity (RIF): percent of pay periods within ±10% of expected deposit.
RIF ≥90% = A-tier. 75–89% = B-tier. <75% = cap at $300 or decline.
Inflow Coverage Ratio (ICR): 30-day net inflow ÷ total scheduled payment(s).
Targets: ≥6x for single-pull, ≥4x for split-pay.
Spend Volatility: stdev of weekly outflows ÷ mean over 90 days.
≤0.35 good, 0.36–0.55 shorten term, >0.55 cut amount and term.
Debt Drag: recurring debt pulls as percent of net inflow.
≤25% ok, 26–35% throttle, >35% cap at $300 or decline.
NSF Density: NSFs in last 60–90 days.
0–1
ok, 2 caution with split-pay, ≥3 decline or require triple split-pay.
Fraud and abuse tells to hard-stop: brand-new account without payroll history, circular P2P transfers, payroll routed via P2P, name mismatches, spikes in high-risk merchant codes. Configure these with your IFV vendor’s flags and webhook alerts. chirp.digital+1
B) Offer matrix that grows LTV from
real payers
A-tier: $600–$1,000, 28–35 days, 2–3 split pulls aligned to payroll.
B-tier: $400–$700, 14–22 days, split-pay required.
C-tier or first loan: $300–$500, 14–18 days, split-pay default.
Auto-graduation: after two on-time split-pays, increase limit by $100–$200 and extend term by 7 days. Growth comes from repeat payers, not relaxing cold-traffic approvals.
C)
Billing and collections engineered from the bank feed
Smart due date: default to the first business day after the actual payroll deposit, not a borrower-typed guess.
Split-pay default: two or three smaller pulls beat one
big hit.
Retry discipline: one ACH on due date, one micro-retry in the next payroll window.
Proactive nudges: when balance appears short 24 hours pre-due, an
automated text offers a same-week split.
Hardship ladder: one free due-date change per quarter for good payers, short EPP if they contact you before DPD-3. These steps help with the new payments regime and lift early-stage cures.
Consumer Financial Protection Bureau
D) Channels that fill the funnel with
high-intent, low-CAC borrowers
Mechanic and tow partners: co-branded “Repair Gap Advance” pages with QR codes. Pay $30–$50 per funded.
Rent-week capture: “Rent Saver” lander for proven payers only, with pre-qualified top-ups timed to
payroll.
GBP domination: three local landers (Payday, Installment, Same-Day Cash) and weekly posts that speak to paycheck-gap fixes.
Chirp refresh tokens: keep
a 30-day refresh so you can re-score on deposit day and extend clean top-ups to A-tier repeaters with one tap. chirp.digital
E) Guardrails and kill-switches that protect the P&L
Charge-off ceiling (principal, 30-day lens): target ≤10–11%. If you print ≥12% two weeks running, cut first-loan caps by $100 and shorten terms by 7 days.
Approval rate on new traffic: 22–30% with bank-data gating.
NSFs per 100 loans: ≤12. If >15, tighten due-date logic and enforce split-pay.
Repeat mix: target 60% of funded volume. If you drop below 50%, mine your book and pause the three riskiest lead sources.
4) Car title loans note for readers
who also run collateralized products
If you offer title loans alongside unsecured loans, keep separate pages, scripts, and metrics.
Title can soak up repair-driven demand, but do not let collateral lull you into sloppy underwriting.
Use the same bank-data controls for capacity and the same collections discipline to avoid fee traps that clash with the payments rule framework. Consumer Financial Protection Bureau
Two ready-to-send SMS assets
Funding day: “Funded. Want us to align your due date to the first business day after your paycheck? Reply
YES.”
DPD-0 morning of due: “Your deposit hit. Split today’s payment in two to stay eligible? Reply 1 for today and 1 for Friday.”
24 hours before due: “Reminder: your payment is due tomorrow. Want us to move it to the first business day after your paycheck
or split it in two? Reply MOVE or SPLIT.”
DPD-3 cure offer: “You’re 3 days past due. Pay $50 today and the rest on payday to stay eligible. Reply LINK for a secure payment page.”
6) Your 1-week implementation checklist
Turn on bank connect gate on page 1 of the application.
Map the five cash-flow features to your decision engine with thresholds above.
Make split-pay the
default on first loans.
Set due dates to post-payroll by default using the bank feed.
Configure Chirp notifications to flag low balances pre-due and
trigger one-tap reschedules.
Update ACH re-presentment and notice logs to align with the CFPB payments provisions. chirp.digital+1
If you want average results, keep doing
average things.
If you want an edge, take ours.
Trihouse IP powers faster approvals, lower losses, and loyal repeat borrowers.
Get the industry
reports, the definitive “bible” for title, payday, and installment lenders, with the instant download of “How to Loan Money to Strangers without Getting Your Butt Handed to You.”
The next winning play starts at TheBusinessOfLending.com.
