Fair Isaac Corporation FICO, an analytics software firm, recently declared the availability of FICO Auto Score 9 XT in collaboration with TransUnion TRU. This new system analyzes up to a month’s "trended" credit data, which will use TransUnion CreditVision Data to create a more accurate score based on recent trends in a consumer's financial behavior.
This latest system is designed to address both lenders and consumers. With the help of TransUnion, the company will be able to examine the way a consumer's behavior is evolving. This system will enable creditworthy consumers to be eligible for the best credit terms available to them, and also help auto lenders expand their portfolios securely by making more accurate decisions about loan terms.
The data acquired from TransUnion CreditVision will enhance lending decisions by providing an elaborate view of consumer credit statistics. This will help in knowing key risk factors, such as whether a consumer is increasing or decreasing credit card balances, making more than the minimum payments on revolving accounts, and increasing or decreasing credit utilization.
Trended data from CreditVision in FICO Auto Score 9 XT provides auto finance customers an in depth vision of borrowers that was previously inaccessible. This collaboration will be profitable for the auto finance community. Using this system, lenders and dealers will have a common FICO score using which they can negotiate the predictive power of TransUnion CreditVision. This score will assist lenders fund more auto loan transactions at competitive rates, benefitting consumers, dealers and lenders.
The FICO Auto Score 9 XT comprises new features shared with other scores in the FICO Score 9 family. Per a research conducted by FICO, this approach is likely to be more predictive of credit risk. Based on this approach many consumers with paid collections or medical collections in their credit files will have higher scores in FICO Auto Score 9 XT than in earlier versions of the FICO Auto Score.
With the help of this system lenders and borrowers will be assured of security and will be provided the best credit option they deserve based on their financial records.
Fair Isaac influences decisions that assist people and businesses around the world prosper. The company powers hundreds of billions of decisions each year in financial services, insurance, telecommunications, retail, and consumer branded goods, healthcare and the public sector.
Fair Isaac carries a Zacks Rank #2. A couple of better-ranked stocks in the industry include EarthLink Holdings Corp. ELNK and Science Applications International Corporation SAIC. Both these stocks carry the same Zacks rank as Fair Isaac.
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