Consumer debt behaviors have changed dramatically over the last decade. Compared to the mid-1990s, current borrowers are maintaining higher mortgage balances, holding a greater number of open, active bankcards and amassing more variable rate debt. Indeed, total debt per borrower has doubled since the latter half of the last decade. In this environment, lenders need precision decisioning tools that allow them to maximize their portfolio risk management standards without compromising deserving borrowers’ access to capital at reasonable terms.
VantageScore is a highly predictive, reliable credit scoring model jointly developed by experts from the country’s three national credit reporting companies (CRCs) — Equifax, Experian and TransUnion. This unprecedented joint venture was initiated in response to growing market demand for an alternative model that would address credit score variance — a source of confusion for lenders and consumers alike — and ultimately enhance lenders’ abilities to make more insightful credit-granting decisions.
The end result of their efforts is a new standard in credit scoring, one that uses the latest analytic techniques, leverages the freshest available data, and provides scores for many consumers previously deemed “unscorable” due to their limited personal credit histories.
Barrett Burns, President and CEO, VantageScore, sits down in advance of his keynote address at the Annual National Collections & Credit Risk Conference to answer attendees’ questions and share his thoughts on credit scoring in general.
Feel free to ask additional questions below. Our goal is to make this a dialogue leading up to the conference. Register now to attend.
