Innovative FICO®Score analyzes trended data to shed light on how a consumer's behavior is changing in months leading up to a credit application
Fresh approach to credit scoring is designed to help consumers qualify for the best credit terms available to them
Most predictive FICO® Score for auto loans helps lenders expand portfolios safely and responsibly
Analytics software firm FICO today announced the availability of FICO® Auto Score 9 XT in partnership with TransUnion, offering lenders the most predictive FICO® Score developed for auto lending. FICO® Auto Score 9 XT based on TransUnion CreditVision® Data analyzes up to 30 months of "trended" credit data to produce a more powerful score informed by the recent trends in a consumer's financial behavior.
"FICO Auto Score 9 XT is the latest innovation from FICO designed to address the interests of both lenders and consumers," said Jim Wehmann, executive vice president, Scores, at FICO. "We've worked with TransUnion on a score that examines the way a consumer's behavior is evolving. This helps creditworthy consumers qualify for the best credit terms available to them, and helps auto lenders expand their portfolios safely by making more precise decisions about loan terms."
The trended data is pulled from TransUnion CreditVision, which enhances lending decisions by leveraging an expanded view of consumer credit data. Whereas a traditional credit report offers a glimpse of consumer data at a snapshot in time, trended data includes up to 30 months of historical information. This includes information about key risk factors, such as whether a consumer is increasing or decreasing credit card balances, making more than the minimum payments on revolving accounts, and increasing or decreasing credit utilization.
"The use of trended data from CreditVision in FICO® Auto Score 9 XT gives our auto finance customers an in-depth view of borrowers that they previously could not access," said Steve Chaouki, executive vice president in TransUnion's financial services business unit. "We are excited to collaborate with FICO to make their score available through CreditVision for the auto finance community. Now, lenders and dealers will have a familiar FICO score through which to communicate the predictive power of TransUnion CreditVision. The score will help lenders fund more auto loan transactions at competitive rates, benefitting consumers, dealers and lenders."
FICO® Auto Score 9 XT based on TransUnion CreditVision Data includes innovative features shared with other scores in the FICO® Score 9 family. It ignores collection agency accounts that have been paid off. It also differentiates unpaid medical accounts that have gone into collections from unpaid non-medical accounts that have gone into collections. FICO's research found this approach to be more predictive of credit risk. The net effect of this approach is that many consumers with paid collections or medical collections in their credit files will have higher scores with FICO® Auto Score 9 XT than with earlier versions of the FICO® Auto Score.
"As with many of our initiatives, we want to help consumers gain access to the best credit options available to them," said Wehmann. "The key is to do it safely so lenders can be confident they are making smart decisions, and consumers can be confident their creditworthiness is being evaluated fairly."
About FICO FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956 and based in Silicon Valley, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 165 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 100 countries do everything from protecting 2.6 billion payment cards from fraud, to helping people get credit, to ensuring that millions of airplanes and rental cars are in the right place at the right time. Learn more at http://www.fico.com.
FICO is a registered trademark of Fair Isaac Corporation in the United States and in other countries.
About TransUnion (NYSE: TRU) Information is a powerful thing. At TransUnion, we realize that. We are dedicated to finding innovative ways information can be used to help individuals make better and smarter decisions. We help uncover unique stories, trends and insights behind each data point, using historical information as well as alternative data sources. This allows a variety of markets and businesses to better manage risk and consumers to better manage their credit, personal information and identity. Today, TransUnion has a global presence in more than 30 countries and a leading presence in several international markets across North America, Africa, Latin America and Asia. Through the power of information, TransUnion is working to build stronger economies and families and safer communities worldwide.