The CreditVision Link risk score assesses the likelihood of a new, non-mortgage account reaching 90 days past due or worse within 12 months after scoring. This FCRA-compliant score is designed to complement or enhance existing scoring strategies. This score has a range between 300 and 850 with a higher score indicating lower risk.

The scores leverage both trended data and alternative databases of over 3 billion non-traditional data records collected on over 260 million adult Americans. CreditVision Link's alternative data assets include property, tax and deed records, checking/debit account and payday lending information, among other sources. These alternative data sources have proven to accurately score more than 90% of applicants who otherwise would be returned as no-hit or thin-file by traditional models. This lift was based on 20 validations already performed by TransUnion with some of the nation's leading lending institutions.

Trended data assets leverage an expanded view of credit data on each consumer that includes up to 30 months of historical information on each loan account, including payment history, such as dollars paid, and amount paid vs. minimum due. It also includes the total amount borrowed over time.

TransUnion is in various stages of testing CreditVision Link with a diverse set of customers, which include several large financial, auto and consumer lending institutions. Early validation results indicate that incorporating CreditVision Link in an underwriting strategy significantly outperforms traditional risk scores and adds considerable lift to both risk assessment and universe expansion strategies.

'TransUnion is the first single source of scores utilizing both trended credit and alternative data, which makes it easier for lenders to accurately evaluate the risk associated with all consumers,' said Mondelli. 'The combined data assets are especially valuable for lenders to better assess similarly-scored customers as the additional information will help determine which consumers may be better risks than others.'

To receive more information about TransUnion's alternative and trended data solutions, please visit http://e.transunion.com/altdata.

For more insight, see our recent blog posts: A Hybrid Approach, Assessing Creditworthiness with Alternative Data, and more on Trended Data insights.

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