Equifax Helps Credit Card Issuers Expand Access to Credit with New Insight Score for Credit Cards
Equifax is helping credit card issuers expand access to credit with the new Insight Score for Credit Cards. This industry-specific credit risk score combines traditional credit data with differentiated data that only Equifax can provide— utility, pay TV, Internet and wireless phone payment history for more than 430 million accounts from the National Consumer Telecom & Utilities Exchange (NCTUE). Layering NCTUE data with traditional credit information can provide a more complete financial picture of card applicants, helping lenders expand their view into consumers with little to no credit history and approve more customers who might previously have been turned down for a credit card account.
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More than 30 million consumers are not scorable by credit data. By adding NCTUE data to the credit decisioning process, Equifax estimates that 5.5 million U.S. consumers would be able to move from unscorable or subprime into prime or near-prime offers. Reaching these consumers is critical to helping lenders reach new customers and foster greater financial inclusion within the U.S. economy.
“With Insight Score for Credit Cards, card issuers are able to score more consumers who may have faced credit-related barriers in the past,” said Mark Luber, Chief Product Officer for United States Information Solutions (USIS). “This is another way that Equifax is helping lenders say ‘yes’ with more confidence. While credit reports remain a strong indicator of credit history and past financial reliability, alternative data from NCTUE has the potential to help open up more financial opportunities.”
Equifax operates and manages the NCTUE database as a vendor on behalf of NCTUE. Insight Score for Credit Cards layers NCTUE data, traditional credit data and patented Equifax NeuroDecision Technology. NeuroDecision Technology provides more predictive insights with models designed exclusively for the credit card industry, enabling lenders to minimize risk in their portfolios and approve 5 to 7 percent more card applicants, according to Equifax data.
The Insight Score for Credit Cards offering is one of several Equifax solutions designed to promote greater access to credit at a time when many Americans need it most. Equifax is committed to removing barriers to financial inclusion, supporting a number of industry initiatives designed to provide underserved populations with the same opportunities to succeed and benefit from the nation’s financial system as others.
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