Alternative Data Scores Can Increase Loan Volume, Reduce Risk [SPONSORED]

Competitive and regulatory pressures continue to impact margins and portfolio growth opportunity. Dealers continue to seek consistency and predictability from their finance source providers. Meeting this challenge requires lenders to both identify and capture higher quality loans throughout the credit spectrum – no easy task when basing underwriting decisions solely on traditional credit scores. Lenders looking to book more deals for continued growth need an advantage – an enhanced view into applicant credit risk that provides key additional information to better fulfill the needs of dealers and consumers.

By combining “traditional data”, data captured by most credit bureaus, with “alternative data”, event and performance data not seen by credit bureaus, lenders can receive a highly predictive second perspective on applicant credit risk. When lenders pair an alternative data auto score with the traditional credit scores they use today, they can hone their origination’s process, identify higher-quality loans at all credit levels, deliver more competitive pricing and manage credit losses with much greater precision.Al

DOWNLOAD our white paper, Harnessing Traditional and Alternative Credit Data, to learn more.