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| October 15, 2007 - Experian |
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Experian`s VantageScore(SM) Provides More Accurate Assessment, Detailed Segmentation of Consumers in Subprime Risk Sector Innovative scoring method offers opportunity for lenders to hone risk management strategy Experian(R), a global information services provider, today announced that VantageScore(SM) the company`s most recently developed credit scoring model, provides lenders with a granular view of the subprime consumer segment. While many credit scoring methodologies have historically grouped all subprime consumers into one general category, VantageScore provides a more refined segmentation of consumers in lower score intervals, allowing lenders to identify pockets of relatively low-risk consumers within the subprime category. A recent Experian study examined a sample of more than 40 million subprime consumers with mortgage tradelines, comparing their credit profile under a traditional Experian risk score and VantageScore. The study found that one-fifth, or approximately 20 percent, of those consumers originally classified as subprime using Experian`s traditional credit risk score were re-classified into lower-risk categories using VantageScore. "VantageScore`s innovative scoring technology helps lenders more accurately assess risk, specifically in the subprime consumer segment," says Kerry Williams, group president, Credit Services & Decision Analytics at Experian. "By providing a more holistic view and a finer definition of the data in the credit profile, VantageScore allows credit grantors to make more precise and predictive lending decisions." Using VantageScore, lenders are given the opportunity to refine their risk-management strategies, possibly extending lower rates or more competitive options to consumers who fall into the "lower risk" segment of the subprime sector. VantageScore, a credit score jointly developed by Experian, Equifax and TransUnion, simplifies the credit granting process for businesses by providing a service that applies one, consistent formula to data from the three major credit bureaus. Introduced to the market in March 2006, this innovative approach to credit scoring provides an objective system across all three national credit reporting companies. For more information about Experian Credit Services & Decision Analytics, please call 888 414 1120 or visit http://www.experian.com/products/vantagescore.html. To download a copy of a white paper detailing VantageScore`s accuracy of risk assessment in the subprime risk sector, please visit http://www.experian.com/vscorewhitepaper. About Experian Experian(R) is a global leader in providing information, analytical and marketing services to organizations and consumers to help manage the risk and reward of commercial and financial decisions. Combining its unique information tools and deep understanding of individuals, markets and economies, Experian partners with organizations around the world to establish and strengthen customer relationships and provide their businesses with competitive advantage. For consumers, Experian delivers critical information that enables them to make financial and purchasing decisions with greater control and confidence. Clients include organizations from financial services, retail and catalog, telecommunications, utilities, media, insurance, automotive, leisure, e-commerce, manufacturing, property and government sectors. Experian Group Limited is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. It has corporate headquarters in Dublin, Ireland, and operational headquarters in Costa Mesa, Calif., and Nottingham, UK. Experian employs approximately 15,500 people in 36 countries worldwide, supporting clients in more than 65 countries. Annual sales are in excess of $3.8 billion. For more information, visit the Group`s Web site on http://www.experiangroup.com/. Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein may be the trademarks of their respective owners. Contact: Cynthia Baker Source: Experian CONTACT: Cynthia Baker of Experian, +1-714-830-7907,
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| Experian by Cynthia Baker, Costa Mesa-CA |
