ThunderRoad measures risk vs. reward with limited credit program

ThunderRoad Financial has launched a limited program for consumers that do not have a “large amount” of credit but are still deemed a “good risk” by the lender, Chief Executive and President Donal Hummer told Powersports Finance.

The “Start Your Thunder” limited program, while similar to a subprime program, targets consumers that have a healthy amount of credit but not enough history to better determine the risk factor of the loan.

“Your risk is still higher because obviously you get a limited amount of credit data, but at the same time, what’s there is good,” Hummer said. “So, we’re just trying to extrapolate out and take a look at some additional stabilizing factors that would point to this being a good customer to loan money.” The Reno, Nev.-based lender looks at factors that indicate stability in order to better assess risk, such as income, proof of residence and employment history.

ThunderRoad launched the program in December based on dealer demand and has thus far gotten positive feedback. “The dealers like it a lot because traditionally, December and January are  slow months,” Hummer explained. “As a lender, you want to try to maximize the ability of whatever customers come in the door to hopefully get them on a bike. Obviously, the timing was really good for us.” ThunderRoad works with 500 dealers in 28 states.