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Credit Score Educational Resources for Credit Union Members (Webcast)

VantageScore Solutions’ recent research shows that consumers are eager for information about credit scores, and that credit scores go up as consumers become more knowledgeable about credit. In this webcast, learn about several resources that your membership can use to increase their knowledge about credit and credit scores.

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Overview

Launched in 2006 by the nation's three major credit reporting companies (CRCs), the VantageScore® credit scoring model is a pioneering and innovative credit scoring model proven to be highly predictive of credit quality ― providing credit unions with a consistent interpretation of consumer credit files across the three CRCs and the ability to score more people more accurately. This means credit unions can identify and extend credit to more creditworthy borrowers, including the millions of Americans who use credit infrequently, and those who are new to the credit market.  

Solutions 

Numerous credit union lenders have implemented the VantageScore credit scoring model into their risk management and underwriting processes.   In addition to improved accuracy, consistency and an expanded pool of credit worthy borrowers, credit unions are switching to VantageScore because its second version, VantageScore 2.0, was built using a deeper sample size of credit files.

VantageScore 2.0 was built starting with 45 million credit files, submitted equally by the three national credit reporting companies. The sample size is taken from recent, multiple timeframes, that includes a period of unprecedented credit availability prior to the recession, and the extreme volatility that ensued. By using such a large sample of data from multiple timeframes, VantageScore 2.0 is able to capture market conditions and have enough evidence to weight behaviors such that the algorithm remains predictive in volatile and normalized economic conditions.

Logically, lenders also appreciate that the VantageScore approach enables the model to be more stable for longer periods of time. This allows lenders to use the VantageScore credit scoring model longer, as the natural deterioration that all credit scoring models inevitably experience is delayed. In other words, VantageScore has proven to be accurate for longer periods of time.

In conjunction with lender adoption, the VantageScore model has achieved significant awareness with federal regulators, including the Treasury Department, Federal Reserve, Federal Housing Administration (FHA), Federal Housing Finance Agency (FHFA) and National Credit Union Administration (NCUA). Read more about VantageScore in the news.

By using the VantageScore credit scoring model in a manual or automated environment, in conjunction with other underwriting criteria, credit unions are assisted with lending decisions and can: 

  • Reduce the time to review the application manually by setting a cut-off score strategy
  • Use the score for tiered offers with multiple cut-off strategies; for example, extend the most favorable offer to your most creditworthy members and appropriately adjusted offers for those members that are in the middle segment of credit risk and those that are more credit risky
  • Set one cut-off to request a deposit for deposit/no deposit (pass/fail) strategies or determine whether a member would fall into a risk category that is unfavorable for your business need
  • Use VantageScore in conjunction with custom application and bankruptcy scores for more accurate decisions when acquiring members
  • Use VantageScore with a custom behavior score to determine appropriate cross-sell, activation and re-pricing decisions for account management purposes 

The following are key breakthroughs that have encouraged credit unions to use VantageScore credit scoring model in their lending strategies:   

NAFCU Member-only Benefits

VantageScore credit scoring model makes available free research findings and education to help credit unions more effectively use credit scoring.

Educational Resources

  • Resource TypeVantageScore Credit Scoring Newsletter (April 2014)
    At this year’s CBA LIVE conference, VantageScore Solutions issued a challenge to the industry: Test us! We invite readers of The Score to do the same. Validate the VantageScore model against your current model to see the impact advanced credit-scoring technology can have. Test what advanced credit scoring can do »
  • Resource TypeIs the Way You Scored Customers State of the Art of State of Denial (White Paper)
    Perhaps the most critical question we can ask ourselves in a post-recession economy is: What can we learn from the last five years to improve our risk management tools? For VantageScore Solutions, this questions led the team developing their latest model, VantageScore 3.0, to challenge every core assumption of the traditional consumer behavioral modeling process to determine whether the long-held "state of the art" data and modeling assumptions continue to be stat-of-the-art.
  • Resource TypeVantageScore Credit Scoring Newsletter (March 2014)
    VantageScore Solutions continues its model conversion and implementation webcast series with a new installment focusing on model implementation and on making the case for upgrading to a new credit score model.
  • Resource TypeVantageScore Credit Scoring Newsletter (February 2014)
    Consumer credit behaviors change over time, and credit scoring models need to change along with them. This is a key reason why the VantageScore 3.0 model is built on the latest data available about consumer credit management behaviors.
  • Resource TypeVantageScore Credit Scoring Newsletter (January 2014)
    VantageScore Solutions kicked off the new year with news that the VantageScore model has gained wider recognition from federal regulators. The company also launched some exciting new consumer-education initiatives in the new year.
  • Resource TypeVantageScore Credit Scoring Newsletter (December 2013)
    Barrett Burns, President and CEO of VantageScore, recaps highlights of the past year in this edition of The Score, including branding initiatives to support the new post-recession VantageScore 3.0 model that combines more granular data with proven analytic science to produce vastly more predictive performance.
  • Resource TypeVantageScore Credit Scoring Newsletter (November 2013)
    Broader credit score choice would benefit consumers, lenders, and the economy, writes Barrett Burns, President and CEO of VantageScore. How criteria for loans under the Qualified Mortgage (QM) and Qualified Residential Mortgage (QRM) rules are standardized and defined has been a critical debate.
  • Resource TypeVantageScore Credit Scoring Newsletter (October 2013)
    “Peeling back the onion” is an overused phrase, but Barrett Burns, President and CEO of VantageScore, writes it’s a good metaphor to describe what’s happening in the consumer credit market. He cautions that if you only take a surface-level view of risk, you will overlook what’s truly occurring.
  • Resource TypeVantageScore Credit Scoring Newsletter (September 2013)
    September's VantageScore Credit Scoring Newsletter includes validation results of the VantageScore 1.0 and 2.0 models and more!
  • Resource TypeCredit Score Educational Resources for Credit Union Members (Webcast)

    VantageScore Solutions’ recent research shows that consumers are eager for information about credit scores, and that credit scores go up as consumers become more knowledgeable about credit. In this webcast, learn about several resources that your membership can use to increase their knowledge about credit and credit scores.

  • Resource TypeVantageScore Credit Scoring Newsletter (June 2013)
    Understanding credit scores is no easy task. Therefore, it makes sense that the question—"What influences my score?"—has no simple answer. Of course, your credit behaviors—including payment history on loans and credit cards, percentage of credit used on credit cards, and total of outstanding loan balances­—is a huge factor. But, credit scores are not that simple. What influences one person's credit score is not exactly the same as what influences another.
  • Resource TypeVantageScore 3.0 Overview (Webcast)
    The VantageScore 3.0 model is getting attention from lenders and consumers alike because it sets a new bar for predictiveness, inclusiveness, and consumer friendliness. It’s also very easy for lenders to implement. In this webcast, we will take a closer look at this new model from VantageScore Solutions.
  • Resource TypeVantageScore Credit Scoring Newsletter (May 2013)
    This month’s newsletter is all about mortgage lending. The market is changing. Homeowners that are refinancing are taking advantage of historically low rates, and a backlog of foreclosures and short sales is slowly working its way through the real estate market. The number of originations (new purchase money mortgages) has remained lukewarm, however, and it is unlikely that the real estate market will truly recover until that is not the case.
  • Resource TypeFive Ways to Make a Credit Score Model Work for You (Blog Post)
    Choosing the right model for your credit union can help you in ways you might not expect, from saving time and expense to improving accuracy and applicant pools. Learn what to look for in credit scoring models in this blog post.
  • Resource TypeNew Credit Risk Realities and Opportunities (Webinar)
    Open up a world of opportunity…up to 35 million more opportunities. The volatility of the current credit environment has deeply impacted both lenders and consumers alike. Lenders need highly predictive models developed post-recession to take these new realities into account, instead of relying on models that were developed with pre-recession data.
  • Resource TypeVantageScore Credit Scoring Newsletter (April 2013)

    This month’s newsletter discusses digital technology, including stories about how lenders are using social media. Specifically, VantageScore surveyed lenders to better understand how they use social media in their day-to-day operations. This newsletter also includes an article about how mobile devices are changing the relationship between consumers and their lenders.

  • Resource TypeVantageScore Credit Scoring Newsletter (March 2013)
    This month’s newsletter provides an overview of the new VantageScore 3.0 model—A Higher Level of Confidence. With this new model, VantageScore dramatically advances the credit scoring industry in terms of inclusiveness, predictiveness and consumer friendliness.
  • Resource TypeVantageScore February 2013 Monthly Credit Scoring Newsletter for Financial Institutions
    This February edition of The Score focuses on the auto finance market, which has been on a healthy tear for the past few years. Included in this newsletter is an article about whether credit standards in the auto loan market have become too relaxed. Also included is an update to the Index of Banking Activity. The “Did You Know” column focuses on how missing payments on an auto loan impacts a borrower’s credit score. 
  • Resource TypeThe State of Consumer Knowledge About Credit Scoring (Webcast)
    VantageScoreWebcast ImageDo you know how informed your members really are about credit scoring? In this webcast, we will learn how much consumers really know about credit scoring, the importance of financial literacy efforts on credit scoring for credit unions, and just how credit unions can improve their members’ knowledge about credit scoring.
  • Resource TypeVantageScore January 2013 Monthly Credit Scoring Newsletter for Financial Institutions
    This month’s newsletter takes a look at what is to come for the housing industry in 2013, and has an article about the newly available edition of TradeLines, VantageScore’s biannual magazine covering the risk management and consumer lending industries. It also includes an update on the Index of Banking Activity, and a “Did You Know” article focused on the importance of paying down holiday-related credit card debt.
  • Resource TypeCredit Scoring 101 (Webcast)

    CreditScoring101ScreenshotThis covers a review of credit score models and changes to the marketplace of credit scoring, including the increased use of different models. Finally, it covers the VantageScore Solutions, LLC credit scoring model and why it is offers more consistent and more accurate predictive analytics to support lending decisions.


  • Resource TypeTips for Smart Holiday Shopping (Blog Post)
    The holiday shopping season is now in full swing. Malls and other retail outlets have their decorations up and holiday music playing, enticing us all to shop for our friends and family. And as inevitable as hearing “Frosty the Snowman” is the chorus of checkout clerks asking shoppers if they’d like to open store credit cards to get a discount on their holiday hauls. Read more of this NAFCU Services Blog post.
  • Resource TypeVantageScore December 2012 Monthly Credit Scoring Newsletter for Financial Institutions
    In this December edition of The Score, VantageScore recaps the year’s accomplishments, challenges and events. To be sure, 2012 was a pivotal year for the VantageScore model, the brand, and for VantageScore Solutions, LLC. In 2012, VantageScore Solutions white papers educated market participants and consumers, VantageScore was named the NAFCU Services Preferred Partner by NAFCU Services, and more.
  • Resource TypeVantageScore November 2012 Monthly Credit Scoring Newsletter for Financial Institutions
    This issue of The Score includes a “Did You Know” column, which covers the impact of opening credit card accounts offered by retailers – a timely topic as we all embark on holiday shopping. Also in this issue is an article covering a recent TransUnion study focusing on the risk profiles of consumers who monitor their own credit profiles and an update on the Index of Banking Activity, and more!
  • Resource TypeVantageScore October 2012 Monthly Credit Scoring Newsletter for Financial Institutions
    An article that covers the FDIC's most recent study on unbanked and underbanked populations, and an update on the Index of Banking Activity are included in this newsletter. The "Did You Know" article in this newsletter centers on how multiple lenders might view a credit score different based on their risk strategies.
  • Resource TypeVantageScore September 2012 Monthly Credit Scoring Newsletter for Financial Institutions
    This month’s newsletter is focused on delinquencies and defaults (delinquencies more than 90 days past due), and how they affect credit scores.  The articles range from complex to very basic. Also included in this month’s edition is the just released annual “State of Credit” study from Experian.  Wondering how Texans’ credit profiles compare to Californians’? Experian did the research, and now you can learn more about it.
  • Resource TypeWho Are “The Unscoreables”? Hint: It’s Not Who You Think (Blog Post)
    Learn more about your members who may be unscorable under traditional credit scoring models that are potential sources of opportunity for your credit union. Read more of this NAFCU Services Blog post.
  • Resource TypeVantageScore August 2012 Monthly Credit Scoring Newsletter for Financial Institutions
    In this issue of the Score, you will read about Barret Burns contributing an article to Credit.com about 'The Unscorables', the index of banking activity rolled out by American Banker and VantageScore Solutions, how you can improve your score (whether it's high or low) and much more!
  • Resource TypeVantageScore July 2012 Monthly Credit Scoring Newsletter for Financial Institutions

    In this issue of The Score, VantageScore Solutions’ monthly newsletter, you will find a story about VantageScore recently being designated as NAFCU Services “Preferred Partner” and content about how some common credit related activities impact one’s credit score. You will also find a “Five Questions With” column featuring NAFCU Services’ President, David Frankil, discussing the credit union industry, and much more!

  • Resource TypeIs Your Credit Union’s Lending Universe Expanding? (Blog Post)
    Here’s an amazing fact: Did you know that between 35 and 50 million adults in the United States may be underbanked?  Suffice to say that a large number of these individuals also don’t have a credit score. That’s equivalent to 18 to 25 percent of the adult population!Read more of this NAFCU Services Blog post.
  • Resource TypeVantageScore June 2012 Monthly Credit Scoring Newsletter for Financial Institutions
    In this issue of The Score, VantageScore Solutions' monthly newsletter, we discuss the new proposed rule by the FDIC that will change how higher risk consumer loan exposure will be defined and calculated for FDIC Deposit Insurance Assessment. We also take a look at our presentation from the Underbanked Conference - "Looking into the Face of the Unscoreable," discuss a new consumer education resource that answers the most common credit scoring question and much more!
  • Resource TypeMember Resources for Credit Score Education
    Take advantage of these member resources for credit score education from VantageScore. Learn activities you can take to improve your credit score, and take the credit score quiz where you can test your credit scoring knowledge.
  • Resource TypeExecuting Effective Validations in 2012 and Beyond (Webinar)

    Learn about recent guidance from the OCC regarding model validations and how to perform validations on your own portfolio by watching this webinar. In this webinar, you will get a guideline summary, and learn about validation framework, conceptual soundness, ongoing monitoring, and outcome analysis. This webinar is designed as a way to think about validating credit scoring models.

  • Resource TypeVantageScore 2.0 Model Validation Results Segmented by Industry Category (White Papers)

    Read whitepapers about VantageScore 2.0 Model Validation Results in the auto finance industry, credit card industry, and mortgage industry. Among the three major consumer credit industries (auto, bank card and mortgage), the auto finance market withstood the headwinds associated with the recent recession and credit crunch most resiliently.

  • Resource TypeVantageScore 2.0 Stress Testing: Predictive Performance, Consumer Default Insight, and Score Democratization

    Often referred to as the "Great Recession," the period between 2008 and 2010 presented an exceptionally challenging environment for U.S. consumers and lenders. In this context, predictive performance of VantageScore® 2.0—already repeatedly validated in times that were economically less challenging - was tested again in a recent study.

  • Resource TypeTradelines: 2012 Q1 (Bi-annual Magazine)

    Tradelines is VantageScore's biannual magazine covering trends and innovations in the risk management sector. Included are articles about how a new examination manual issued by the Consumer Financial Protection Bureau could impact providers of consumer financial products and services. Also included is a story about new chip and PIN technologies available for debit cards, and an interesting piece on marketing strategies for targeting consumers with differentiating default risks.

News

Contact VantageScore Solutions, LLC

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www.vantagescore.com
info@vantagescore.com