Verify “Credit Invisibles” to Drive Predictive Lift

Date: May 30, 2018

A new white paper shows how creditworthy consumers are scoreable when credit scores are twice verified using VantageScore 3.0, improving predictive performance by more than 20 percent.

VantageScore Solutions, LLC, developer of the VantageScore® credit scoring model, released a new white paper that details how lenders can increase the predictive level of risk assessments for “credit invisible” consumers, those who have less information than is required in order to generate a conventional credit score. The white paper, “Boosting Predictive Power Using Multiple Scores in the Credit Invisible Population,” examines the verification process that uses VantageScore 3.0 on these credit invisibles (also referenced as the universe expansion population) in order to score two to three million more consumers.

VantageScore research indicates that using VantageScore 3.0 alongside a verification process that combines and compares the differences, if any, against two VantageScore 3.0 credit scores from two separate credit reporting companies (CRCs) drives additional predictive performance by more than 20 percent for a quarter of the consumers who are typically credit invisible.

The results of using a two-CRC verification process to identify consistent and predictive risk, led to an improvement in a traditional credit score’s predictive levels:

  • By establishing a credit score “verification” process, VantageScore 3.0 can yield a ‘twice verified score,’ which delivers a 20-26 percent predictive performance improvement in the credit scores of approximately one in four credit invisible consumers.
  • Approximately 37.6 percent of the twice verified universe expansion credit scores received a credit score greater than 600, qualifying them in the conventional lending space. 22.6 percent of these consumers score above 660. Translating to about 2-3 million highly creditworthy consumers.

“Since VantageScore was formed, our mission has always been to score more consumers, more accurately without loosening risk standards. Using a verification process that employs VantageScore 3.0 from all three CRCs, lenders can now confidently gain more predictive power and distinguish new opportunities in the underserved population,” says Barrett Burns, CEO and president, VantageScore Solutions.

For more details on the “Boosting Predictive Power Using Multiple Credit Scores in the Credit Invisible Population” white paper, visit:

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