19
October
2010
|
23:00 PM
America/Chicago
VantageScore Launches New Version of Scoring Model
STAMFORD, Conn., Oct. 20, 2010 – VantageScore Solutions introduced VantageScore 2.0, the newest version of its successful credit scoring model, company officials announced today.
The driving force behind the creation of VantageScore 2.0 was a significant change in consumer credit repayment behavior, according to Sarah Davies, senior vice president of product management, analytics and research. Davies said all credit models should be updated regularly to ensure they remain as accurate as possible, adding that VantageScore 2.0 shows an improved performance over the original version across the main industries where credit scores are used.
The VantageScore credit risk model was first introduced in March 2006 in direct response to a demand for a credit score model that would be more predictive, score more people and offer more consistent consumer scores across all three credit reporting companies (CRCs) – Equifax, Experian and TransUnion.
The newest installment of VantageScore was built using a development sample compiled from two performance timeframes, 2006 – 2008 and 2007 – 2009, with each timeframe contributing 50-percent of the sample, reflecting more recent credit conditions.
“Developing VantageScore 2.0 over multiple performance windows reduces the model’s sensitivity to highly volatile behavior in single timeframe,” Davies explained.
“VantageScore 2.0 is built on a blend of consumer credit bureau behaviors from 2006-2009, which creates a highly predictive score,” said Barrett Burns, VantageScore Solutions President and Chief Executive Officer. “We’ve recently experienced a variety of economic scenarios, including an increase in foreclosures in the housing market and changing payment priorities among consumers.”
Burns said since its release in 2006, ongoing exhaustive research and analytic efforts are conducted on the VantageScore algorithm to maintain the performance of VantageScore and that effort will continue.
“This effort will not stop with the introduction of VantageScore 2.0,” he added, “and the result will be the strongest, most up-to-date credit score in the market.”
Additionally, lenders now can contact any of the CRCs to begin testing VantageScore 2.0, which will be available for lender use by January 2011. VantageScore is currently available to consumers from Experian and TransUnion. Those companies will create their own timelines individually regarding the availability of VantageScore 2.0 for consumers.
About VantageScore Solutions
The VantageScore credit score is used by all of the top five credit card issuers, four of the top five financial institutions and two of the top five auto lenders.
Stamford, Conn.-based VantageScore Solutions, LLC (www.vantagescore.com) is an independently managed company that holds the intellectual property rights to VantageScore. Created by America’s three major credit reporting companies (CRCs) — Equifax, Experian and TransUnion — VantageScore’s highly predictive model uses an innovative and patented scoring methodology to provide lenders with a more consistent interpretation of consumer credit files across all three major credit reporting companies and the ability to score more people.
The driving force behind the creation of VantageScore 2.0 was a significant change in consumer credit repayment behavior, according to Sarah Davies, senior vice president of product management, analytics and research. Davies said all credit models should be updated regularly to ensure they remain as accurate as possible, adding that VantageScore 2.0 shows an improved performance over the original version across the main industries where credit scores are used.
The VantageScore credit risk model was first introduced in March 2006 in direct response to a demand for a credit score model that would be more predictive, score more people and offer more consistent consumer scores across all three credit reporting companies (CRCs) – Equifax, Experian and TransUnion.
The newest installment of VantageScore was built using a development sample compiled from two performance timeframes, 2006 – 2008 and 2007 – 2009, with each timeframe contributing 50-percent of the sample, reflecting more recent credit conditions.
“Developing VantageScore 2.0 over multiple performance windows reduces the model’s sensitivity to highly volatile behavior in single timeframe,” Davies explained.
“VantageScore 2.0 is built on a blend of consumer credit bureau behaviors from 2006-2009, which creates a highly predictive score,” said Barrett Burns, VantageScore Solutions President and Chief Executive Officer. “We’ve recently experienced a variety of economic scenarios, including an increase in foreclosures in the housing market and changing payment priorities among consumers.”
Burns said since its release in 2006, ongoing exhaustive research and analytic efforts are conducted on the VantageScore algorithm to maintain the performance of VantageScore and that effort will continue.
“This effort will not stop with the introduction of VantageScore 2.0,” he added, “and the result will be the strongest, most up-to-date credit score in the market.”
Additionally, lenders now can contact any of the CRCs to begin testing VantageScore 2.0, which will be available for lender use by January 2011. VantageScore is currently available to consumers from Experian and TransUnion. Those companies will create their own timelines individually regarding the availability of VantageScore 2.0 for consumers.
About VantageScore Solutions
The VantageScore credit score is used by all of the top five credit card issuers, four of the top five financial institutions and two of the top five auto lenders.
Stamford, Conn.-based VantageScore Solutions, LLC (www.vantagescore.com) is an independently managed company that holds the intellectual property rights to VantageScore. Created by America’s three major credit reporting companies (CRCs) — Equifax, Experian and TransUnion — VantageScore’s highly predictive model uses an innovative and patented scoring methodology to provide lenders with a more consistent interpretation of consumer credit files across all three major credit reporting companies and the ability to score more people.
