New credit score model looks to transform lending

“This is potentially a big deal,” says Credit.com’s CEO Ian Cohen. “For tens of millions of consumers, one-time mistakes — maybe a single missed payment from a hospital visit — have led to years of subprime interest rates and denied credit. The issue has always been how to keep credit scores predictive so lenders can rely on them. These days, there are plenty of additional data sources available to do a ‘deeper dive,’ so to speak. This could help make credit more individualized. You actually see this approach in the insurance industry, and I’m glad we’re now seeing it in the credit scoring industry as well…

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