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Default Risk Index

powered by TransUnion

The Default Risk Index presents the most accurate way to use credit scores to evaluate and compare pools of loans. This free, interactive data series is published quarterly to the VantageScore website using data from TransUnion. Rather than use credit scores to directly gauge risk profile—a practice that is common but flawed—the DRI is derived using the probability of default tables that lie beneath each credit score. In a single number, the Default Risk Index summarizes the risk profile of new originations in a way that is mathematically accurate and consistent over time.

How has the risk profile of new originations changed over time?

The interactive chart below illustrates the risk profile of consumer loans originated each quarter, with higher values representing riskier loans.

Hover over to view exact values per industry. Click on the key beneath the graph to suppress or display each industry.

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Indexed to Q3-2013

Consumer lending as a whole has become more conservative. Lenders of all sectors have moderated their appetite for risk since 2014, with mortgage lenders showing the steepest decline in risk taking.

How much risk did lenders take last quarter?

The dashboard below summarizes the total volume, risk profile, and Default Risk Index value for consumer loans originated last quarter.

Total Originations [i] Probability of Default (weighted average) [i] Default Risk Index [i] DRI vs. Last Quarter DRI vs. Same Quarter Last Year
Mortgage
Bankcard
Auto
Student

On a sequential and year-over basis, last quarter represented an overall reduction in risk taking by consumer lenders of all sectors.

How have total lending volumes changed over time?

The interactive chart below illustrates the total volume of consumer loans originated each quarter. For bankcard loans, the values represent total credit limits originated during the quarter.

Hover over to view exact values per industry. Click on the key beneath the graph to suppress or display each industry, or click on any colored bar in the graph to view that industry by itself.

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Billions of dollars

Despite a reduction in risk taking, origination volumes increased markedly last quarter led in large part by the mortgage sector.

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