Models & Scores

According to research from VantageScore® Solutions LLC, 30 to 35 million people are not scored by the most popular credit-scoring models. When measured by more modern scoring methodologies — methods that leverage the data that exists in a person's credit file better — as many as 10 million of these unscoreable consumers were found to have prime or near prime credit scores. The study reinforces the importance of using advanced credit scores in order to profitably grow portfolios while providing consumers with access to fair and equitable credit. Credit Scoring Gaps Are Leaving Millions of Consumers Behind VantageScore® is a registered trademark of VantageScore Solutions, LLC.

Universe expansion is key to any lender's growth strategy. Sophisticated, advanced risk models, such as the VantageScore®3.0 model, allow lenders to score up to 35 million more consumers than other risk models.

A recent Experian Consumer Services survey focusing on the most important attributes in a prospective spouse found that married adults value financial responsibility more than physical attractiveness.

Experian's most recent Credit Trends study analyzing current debt levels and credit scores in the top 20 major U.S. metropolitan areas found that Detroit, Michigan, residents have the lowest average debt ($23,604) and Dallas, Texas, residents have the highest average debt ($28,240).1

As part of its guidance, the Office of the Comptroller of the Currency recommends that lenders perform regular validations of their credit score models in order to assess model performance.

In an effort to understand consumer needs better and help lenders educate their customers, VantageScore® Solutions surveyed more than 200 lenders nationwide on the topic of score reason codes.