For J.D. Byrider, a used - car sales and finance company, Equifax developed a risk - assessment model that
uses traditional credit data augmented with alternative data sources such as telecom and utility information.
Charlie Wise, vice president in TransUnion's Innovative Solutions Group, said Fannie will likely use a mix
of traditional credit data, trended credit data and FICO scores.
The company looks
beyond traditional credit data and taps into students» academic data history to expand and enhance loan options, offering loans with better terms that may not even require a cosigner.
Traditional credit data is limited in that it doesn't fully account for a consumer's complete financial profile and his or her total ability to pay his or her debts.
In addition to
traditional credit data, FICO ® Score XD consumes alternative data from telco,... [Read More]
«
Traditional credit data and analytics continue to be relevant, but are not sufficient to satisfy the consumer credit reformation of today,» says the CEB TowerGroup's senior research director, Craig Focardi.
CEB TowerGroup evaluated data from a joint analysis conducted by CoreLogic and FICO that compares the FICO ® Score used by most lenders today with a new score launched in July that evaluates
the traditional credit data from national credit data repositories and the unique alternative credit data contained in the recently launched CoreScoreTM credit report.