I’m excited about a new solution TransUnion launched called CreditVision® Link(SM), which is the first credit score in market to combine both trended credit data and alternative data sources. The purpose of the new solution suite is to create a more holistic picture of consumer ability to manage financial commitments, in order to determine risk levels with far more precision.Using the combined data assets within CreditVision Link, lenders can now effectively score up to approximately 95% of the U.S. adult population.
CreditVision Link leverages alternative databases of over 3 billion non-traditional data records collected on over 260 million adult Americans. TransUnion’s alternative data assets include property, tax and deed records; checking and debit account management, payday lending information, address stability, club memberships and subscriptions, among other sources. Our trended data assets include up to 30 months of historical information on each loan, with actual payment history and amount borrowed over time.
The result of adding different data assets is that 60 million traditional “no-hits” and unscorable records can now be scored, and the super prime customer base could expand by more than 23 million U.S. consumers. The combined data assets are especially valuable for lenders to better assess similarly scored customers. When lenders use incremental data, millions of consumers could benefit from better rates and terms on credit products — a win-win for both lenders and consumers.
Based on the initial 20 validations we’ve already performed with some of the nation’s leading lending institutions, these data sources have proven to accurately score more than 90% of applicants who otherwise would be returned as no-hit or thin-file by traditional models.
We’re currently in various stages of testing CreditVision Link with a diverse set of customers, which include several large financial, auto and consumer lending institutions. Early validation results indicate that incorporating CreditVision Link in an underwriting strategy adds considerable lift to both risk assessment and universe expansion strategies.