TransUnion credit score tool could increase auto loan approvals 24%
CHICAGO (10/9/15)--TransUnion has released a new credit scoring tool that the company says could increase auto lending approvals by 24%.
CreditVision Link combines trended credit bureau data and alternative data sources--creating a more precise picture of consumer risk and a potential borrower’s ability to manage financial commitments. CreditVision Link allows lenders to score up to roughly 95% of the U.S. adult population.
CreditVision Link’s alternative data assets include property, tax and deed records, checking/debit account and payday lending information. These alternative 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.
Through recent testing of the solution by a major auto lender, TransUnion identified up to 24% more approvals for the auto lender. Due to the lender’s increased booking rates, the lender could potentially have a 5.7% to 11.5% increase to its portfolio size.
TransUnion is in various stages of testing CreditVision Link with consumers and large financial, auto and consumer lending institutions. Early results indicate that CreditVision Link strategy outperforms traditional risk scores and improves risk assessment and increases approvals.