CHICAGO–TransUnion has released “CreditVision Link,” which it is calling the first credit score in the market to combine both time-series credit bureau data and alternative data sources – creating a more precise picture of consumer risk and their ability to manage financial commitments.
CreditVision Link allows lenders to score up to approximately 95% of the U.S. adult population, according to TransUnion.
“The combination of the data within CreditVision Link was designed to allow users to score with far more precision,” the company said. “Many current customers and applicants of financial institutions may be assessed as lower credit risks, receive more beneficial pricing or possibly switch from a decline to an approval when this score is applied. 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.”
According to TransUnion, financial institutions can now lend to emerging credit populations with greater insight. “These groups are often denied by lenders or subject to less favorable lending terms because they don’t have sufficient data on their credit files. In fact, more than 60 million traditional ‘no-hits’ and unscorable records can be scored using CreditVision Link,” TransUnion said.