Consumer behavior changes every day, yet lenders often evaluate potential and existing customers based on a “moment in time” snapshot of their credit score. By using enriched consumer information like trended data, lenders can better understand their audience, thus increasing their potential customer base by as many as 26.5 million people.
With advanced risk scores that leverage trended data, lenders can strategically grow their loan portfolio by more confidently assessing the ability of a consumer to repay a prospective debt. With a single score representing consumer performance over a longer period of time, lenders gain a clearer picture of how consumers manage their credit, good and bad. This clarity yields a more precise risk score – giving lenders greater control and confidence to grow accounts.
In addition to better risk scoring, historical, trended consumer behavior enables the ability to score consumers with limited credit history. Lenders can now assess new applicants and existing accounts with a more powerful credit score built on some of the most current credit data available. Historical data brings consumers into full view, enabling millions more consumers to be scored. A clear and robust picture of more consumers creates the opportunity for better lending decisions, giving lenders the ability to confidently say, “yes”, more often.
TU experts have developed a variety of resources to help you understand – and connect with – a vast, previously undiscovered pool of creditworthy consumers.
Check out the Score Savvy Insight Guide, which informs lenders of new elements now being leveraged in credit risk scores.
The guide also provides insight into scoring a greater population of consumers, and how to achieve better segmentations across risk bands – giving lenders the ability to confidently approve more consumers.
For more information, or to speak to an expert at TU directly, email us at ScoreSavvy@TransUnion.com to send us a note.