Experian Lift™ enhances predictive performance by 23 percent when compared to other scores used for identifying and underwriting credit invisibles
In a move designed to help credit invisible and thin-file consumers gain access to fair and affordable credit, Experian announced Experian Lift™ – a new suite of credit score products that combines exclusive traditional credit, alternative credit and trended data assets to create a more holistic picture of consumer creditworthiness. Experian Lift, available for lenders in early 2020, is another step in Experian’s commitment to helping improve the financial health of consumers everywhere.
Earlier this year, Experian launched Experian Boost – a free and first-of-its-kind financial tool that empowers consumers to add positive telecom and utility payment history directly into their Experian credit file for an opportunity to instantly increase their FICO Score.
‘There are more than 100 million consumers who are restricted by the traditional scoring methods used today,’ said Greg Wright, executive vice president and chief product officer for Experian Consumer Information Services. ‘We’re committed to improving financial access while helping lenders make more informed decisions. Experian Lift is our latest example of this commitment brought to life. Through Experian Boost, we’re empowering consumers to play an active role in building their credit histories. And, with Experian Lift, we’re empowering lenders to identify consumers who may otherwise be excluded from the traditional credit ecosystem.’
Developed in collaboration with Experian DataLabs, the company’s advanced analytics research and development group, Experian Lift uses the most advanced analytics available today and combines traditional credit data and trended data, providing a view of consumer credit behavior over a 24-month period. Lenders can seamlessly integrate Experian’s new score into their current models for better risk management and more agile decisions. In addition, lenders can use Experian Lift independently to help score a consumer with no traditional credit file.
‘Knowing how a consumer is managing credit at a single point in time only tells part of the story. By looking at historical payment information through our trended data attributes, we can see how a consumer uses credit, or pays back debt over time, to create a more accurate risk profile,’ added Wright.
To help evaluate the creditworthiness of consumers who lack a traditional credit history, Experian Lift also integrates Experian’s exclusive alternative data assets, including alternative financing information, rental data and full file public records information including professional licensures. Incorporating these assets into score models improves access for consumers excluded from the traditional credit ecosystem by looking at their financial stability, willingness to repay and ability to pay. All data analyzed through Experian Lift is Fair Credit Report Act (FCRA) regulated.
Experian Lift uses exclusively developed technology and machine learning methods for model development and explainability. Combining this with Experian’s exclusive data assets empowers lenders to score previously unscoreable consumers while improving predictive performance across the credit spectrum.
‘Experian is at the forefront of helping consumers and businesses make the right decisions and turn insights into action. As we head into a new decade, the trend of utilizing alternative data is only going to continue growing and will be critical to improving financial access,’ added Wright.