Announcing the Cash Advance History Score

We’ve released our new Cash Advance History Score (CAHS)! This score showcases a user’s repayment history across multiple cash advance providers.

A higher score corresponds to better repayment behavior by the user. For example, a score of 100 shows that the user never repaid any cash advance in the specified interval within 7, 15, or 30 days, while a score of 999 shows that the user has had multiple cash advances in the past and repaid all of them within 7, 15, or 30 days.

How it works

  • Pave’s matching algorithm accurately labels every cash advance and its corresponding repayment.
  • Pave calculates a 3-digit score that summarizes the user’s cash advances for specific amounts and their repayment rates.
  • The scores are broken down as follows:
    • Excellent: 850 to 999
    • Good: 720 to 849
    • Average: 590 to 719
    • Poor: 100 to 589

Why this matters

  • When a new user requests a cash advance, they usually get approved for a small advance
  • A user must prove their creditworthiness in order to graduate to larger cash advances. This is a lengthy process of proving they can repay over months, which leads to a bad experience and eventual churn.
  • The Cash Advance History Score allows a provider to assess a new user’s repayment history across other providers in order to offer a higher cash advance amount upfront. This results in a better user experience, increased retention, and increased average revenue per user (ARPU).

Use Cases

  • Offer personalized cash advance amounts or credit limits based on the user’s CAHS
  • Offer higher initial advances to increase retention for users with good or excellent scores
  • Increase approvals for new users with good or excellent scores
  • Reduce credit limits or deny users with average or poor scores