VantageScore scores almost 10% more Hennepin County residents than conventional scoring models
One half of the famous ‘Twin Cities,’ Minneapolis, MN is home to firsts such as the first intercollegiate basketball game in the country, home to many iconic American brands and Fortune 500 companies, and even home to world-famous musical artists. About 1.25 million residents call Minneapolis’ Hennepin County home.
Despite the incredible cultural capital Minneapolis offers, over 67,000 residents in Hennepin County currently don’t meet the minimum criteria required to be scoreable according to conventional credit scoring models, according to a recent analysis by VantageScore. Inclusion360 Powered by VantageScore™, an interactive tool that sheds light on geographic sectors about the potential for financial inclusion, estimates that about 9% of the population (18 years and older) of Hennepin County can be accurately scored with VantageScore 4.0 but are missed by traditional credit scoring models.
Consumers with thin credit files – those with little information – or dormant files with no updates in the past six months can become undetectable by traditional credit scoring models. These consumers, referred to as ‘credit invisible,’ become excluded from the financial services marketplace due to their lack of a credit score, often through no fault of their own.
VantageScore’s more inclusive credit models help increase equitable access to financial products for the underserved and creditworthy in cities such as Minneapolis while also identifying currently untapped growth opportunities for lenders and financial institutions.
INCLUSION360’s MINNEAPOLIS SNAPSHOT:
- FINANCIAL INCLUSION EXPANDS: VantageScore models score 9% more residents (18 years and older) in Minneapolis than conventional models. This means almost 95% of Minneapolis residents are scoreable by VantageScore, as compared to 85% scored by other models.
- LENDABLE POPULATION GROWS: Over 67,000 Hennepin County residents with Near Prime or higher scores are currently credit-invisible, representing a sizeable creditworthy lendable population.
- UNDERSERVED COMMUNITIES WIN: Communities that most benefit from greater VantageScore adoption tend to be predominantly Black, Hispanic, and Asian.
VantageScore’s Inclusion360 is a groundbreaking, open-access, and interactive analytics platform that uses comprehensive data sets to uncover previously underserved consumers by geographic market.
To experience the Inclusion360 tool and get specific insights by geography, please visit https://vantagescore.com/lenders/inclusion360/.
Explore other Inclusion360 insights on unscored populations throughout the United States in our previous posts:
