STAMFORD, Conn.--(BUSINESS WIRE)--VantageScore Solutions, the company behind the VantageScore® credit scoring model, today released a white paper, titled “Implementing a New Credit Score in Lender Strategies,” which shares how to use a score conversion process to improve lender strategies and expand lender portfolios.
The basis of the white paper derived from the sentiment that the credit score conversion process can be complex and possibly even unnecessary. Because of this mindset, many businesses are not able to benefit from updated risk management tools that actually can increase their lender pool and help them meet credit and risk management goals. With the ever-changing economy and newly updated credit score models, the white paper demonstrates that using a score conversion process will allow for more opportunities for outreach to more loan candidates and, ultimately, increase lender business.
“In this post-recession economy, no one should be using antiquated resources to assess risk strategy. Adopting a new credit-scoring model can help lenders identify more loan candidates as well as more accurately evaluate new loan applications,” said Sarah Davies, senior vice president of VantageScore Solutions for analytics, research and product management. “With the right tools and guidance, it can be simple, and more importantly, advantageous for lenders to initiate the process so they can extend their universe of borrowers.”
The “Implementing a New Credit Score in Lender Strategies” white paper serves as a resource for lenders by examining three potential levels of conversion process. The simplest, “Plug & Play,” entails relatively straightforward replacement of an incumbent set of scores with an updated set of scores. However, the most multi-faceted process may require a full re-design and re-optimization of the strategy. Each conversion process is detailed extensively with various methods of designing, testing and reporting to assist lenders in understanding which process is right for their business.
In addition to the white paper, available for download at VantageScore.com, lenders can find more information on the “Plug & Play” conversion process in the Model Conversion: Plug & Play white paper as well as several Model Conversion and Implementation Webcasts.
About VantageScore Solutions
VantageScore Solutions, LLC (www.vantagescore.com) is the independently managed company that owns the intellectual property rights to the VantageScore credit scoring models, including the recently announced VantageScore 3.0 model which provides up to 25 percent predictive improvement over earlier models and has the ability to formulate a score for 30 – 35 million previously unscoreable consumers. Initially developed by America’s three national credit reporting companies (CRCs) — Equifax, Experian and TransUnion — VantageScore Solutions’ highly predictive models use an innovative, patented and patent-pending tri-bureau scoring methodology that provides lenders and consumers with more consistent credit scores across all three national credit reporting companies.
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