FactorTrust, a provider of alternative data in the auto finance industry, launched a new auto score aimed at increasing the opportunity for nonprime consumers to secure vehicle financing, the company announced late July.
“It provides lenders the ability to underwrite the credit-invisible,” Scott Brackin, FactorTrust’s auto finance segment leader, told Auto Finance News. The LendProtect Auto Score is tailored for auto lenders serving nonprime consumers and is based on FactorTrust’s alternative credit data.
“We provide insights about consumers that either take out short-term loans or apply for loans,” Brackin said. “They are considered untrackable for the traditional bureaus.”
LendProtect uses alternative tradeline data and application information, stability metrics, and payment data, according to a company press release. The new score will also allow lenders to provide lower annual percentage rates to nonprime consumers, as lenders will have additional insight about consumers’ creditworthiness.
“The score helps the unbanked and the underbanked,” Brackin said. “That marketplace exists and thrives.”
