Newly offered credit scoring model provided in partnership with TransUnion®
700 Credit, LLC, the automotive industry’s leading provider of credit reports, compliance solutions, prescreen and consumer pre-qualification products and services, announced a 45-day pilot providing free TransUnion VantageScores for all current credit report clients.
VantageScore, jointly owned by Equifax, Experian and TransUnion, is a scoring model that offers an alternative, cost effective credit score solution for automotive dealers.
“While VantageScore may not be as familiar to automotive dealers as a FICO score, it has gained traction across a wide variety of categories including credit card companies and lenders offering personal loans,” said Ken Hill, Managing Director of 700Credit. “It is also the primary score used by consumers to gauge their own credit worthiness, and dealers report that consumers often bring their VantageScore credit scores into stores with expectations that they will receive financing. We are very pleased to offer this scoring model alternative for our customers.”
VantageScore has identifiable benefits including scoring more consumers 18 and over that are newer to credit, in addition to people who have been credit inactive for over 6 months. As a result, VantageScore provides credit scores for 40M+ consumers that are unscoreable when conventional models are used by dealers and auto lenders.
“Every year millions of consumers don’t get the right financing for a car or truck because they are conventionally unscoreable or dealers aren’t using the same score that the customer is familiar with,” said Barrett Burns, president & CEO of VantageScore Solutions and former executive vice president of Global Risk Management at Ford Motor Credit. “By leveraging VantageScore, consumers will get the right loans with the right terms and dealers can quite simply move more metal. It’s a win-win.”
VantageScore credit scores are used by lenders, landlords, utility companies, telecom companies, and many others to determine creditworthiness. A recent study found that nearly 10.5 billion VantageScore credit scores were used by over 2,800 unique users, including more than 2,200 lenders, from July 2017 to June 2018.
The VantageScore model plays a vital role in making the credit markets more accessible to creditworthy consumers while creating a corresponding opportunity for dealers and lenders. The model can better distinguish between consumers with a clear track record of unfavorable credit behaviors from those who are simply starting to develop, or re-develop, credit histories. Individuals in these groups typically include:
- Young adults just starting their careers or who are new to credit
- Recently divorced or widowed individuals with little or no credit in their own name
- Newly arrived immigrants
700Credit is the automotive industry’s leading provider of credit reports, compliance products and prescreen services. The company’s product and service offerings include: credit reports, dealer-facing prescreen and consumer-facing pre-qualification platforms, OFAC compliance, Red Flag solutions, score disclosure notices, adverse action notices and more. 700Credit’s goal is to provide its clients with the highest quality data in a compliant framework in the most efficient manner possible. For more information about 700Credit, visit http://www.700credit.com.
Source: 700credit Press Release