St Casimirs Mortgage Minute

 

Looking Beyond Buyers'
Credit Scores



Lenders today can tap a new array of technology, relying on nontraditional credit
data for insight into a consumer's debt-management history. Those tools mean
lenders can be far more confident about the quality of their loans, even as the
portion of automotive lending that goes to subprime borrowers continues to
rise. Peter Turek, TransUnion's vice president of automotive, says
nontraditional data help "expand the universe of potential borrowers for
lenders." In October, TransUnion launched its CreditVision tool, which
dives deep into consumer credit behavior going back 30 months. CreditVision can
tell whether consumers are "building balances on all their revolving
accounts over time, or paying down balances." According to TransUnion,
CreditVision also is able to see how much people spend on their credit cards
each month and whether that spending activity has increased or decreased from
the year before. TransUnion found during an analysis of new consumer auto and
credit card accounts that people who were revolving on their credit cards in
the month before opening a new one were two to three times more likely than
transacting consumers to become delinquent.



From "Looking Beyond Buyers' Credit Scores" 

Automotive News (05/12/14)
Bond, Vince