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No Credit Score? No More with TransUnion’s New CreditVision Link Scoring System

October 9th, 2015 · No Comments · Credit Scores

by Kristy Welsh

(Last Updated On: February 26, 2018)

No Credit Score? No More with TransUnion’s New CreditVision Link Scoring System

If your credit history doesn’t include enough information for traditional scoring models to generate a number, lenders have a hard time evaluating your risk and, in turn, extending you credit. Thus, the beauty of TransUnion’s new CreditVision Link scoring model. Thanks to the use of alternative data sources to supplement trended credit bureau data, millions of previously unscorable consumers will get a credit score. As a result, TransUnion says lenders will now be able to score 95 percent of the U.S. adult population.

About TransUnion’s CreditVision Link

Like other credit scoring systems, CreditVision Link generates a score ranging from 300 to 850. It also draws from data collected by TransUnion, one of the three major credit reporting bureaus.

But where CreditVision Link makes its departure from traditional credit scores is in its use of alternative data sources, like data collected about your property, tax and deed records, checking account, and any history you may have with payday loans.

And though CreditVision Link uses credit bureau data, its use of trended data is where TransUnion says its system takes a departure from traditional scoring models:

“Traditionally, credit scores have incorporated one snapshot in time of a consumer’s history of credit usage. Trended data incorporates past history connected over time to indicate risk level based on the trajectory of a consumer’s debt balances, spending and actual payment amount….

“Trended data assets leverage an expanded view of credit behavior data on each consumer that includes up to 30 months of historical information on each loan account, plus payment history, amount paid vs. minimum due, and the total amount borrowed over time, for a more holistic view of a consumer’s credit behavior and trends.”

Impact on Lending

Based on studies TransUnion has conducted thus far, its CreditVision Link will mean increased lending to consumers who would otherwise not qualify.

Case in point, its test of the new scoring model by an auto dealer that TransUnion says was able to generate 24 percent additional approvals thanks to its new scoring model. That is presumably thanks to its impact on consumers who previously had no score, as well as those whose scores are boosted by it.

What Do You Think?

Do you like the idea of this new credit scoring model – trended (i.e., historical) credit bureau data, as well as alternative data pulled from your checking account, tax record, property ownership, and the like? Why or why not?

Learn more about credit scoring.


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