Are Auto Lenders Overlooking Creditworthy Consumers?

The past 10 years generated a lot of change in the consumer credit industry. Repercussions of the financial crisis, new regulations, and expanding sources of credit such as marketplace lending, have left many creditworthy individuals underrepresented or misrepresented by traditional scoring models. Conventional scores offer only a partial view of consumer behavior and its associated […]

Tricolor Adds AI to Expand Risk Scoring Capabilities

Used-car retailer Tricolor, working with partner Phenx Machine Learning Technologies, said this week that it is adding artificial intelligence to its underwriting system. The strategic partnership is a move for Tricolor to increase financial inclusion for its buy-here-pay-here consumers, Chief Executive Daniel Chu told Auto Finance News. By leveraging Phenx’s AI-enabled algorithm, Tricolor can automatically identify […]

Why Lenders Should Leverage Alternative Data to Assess Credit Risk

Every lender has been in the situation. A new customer with a limited credit history wants a good rate on a first-time auto loan. The numbers are lacking, but the instinct gnaws. Take the risk? Make the deal? In these situations, consider evaluating alternative data to assess credit risk. According to an Experian study fielded […]

Fair Isaac’s UltraFICO May Be a Boon for Borrowers

Fair Isaac Corp. announced on Monday a new scoring system that would take into account a borrower’s checking, savings, and money market account transactions. By including these activities with traditional FICO metrics, the new system could boost many consumers’ credit scores. The new product, called UltraFICO, was unveiled at the Money 2020 in Las Vegas. […]