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.
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.
The Default Risk Index translates each new loan into a risk estimate using the most recent odds charts available. This quarter reflects the first update to the odds charts since July 2016.
The dashboard below summarizes the total volume, risk profile, and Default Risk Index value for consumer loans originated last quarter.
|Total Originations||Probability of Default (weighted average)||Default Risk Index||DRI vs. Last Quarter||DRI vs. Same Quarter Last Year|
Through the lens of newly-updated odds charts, this most recent quarter saw a significant increase in the risk profile of new credit cards as compared to a significant decrease in the riskiness of new mortgages from the previous quarter.
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.
Originations in all loan categories remained at similar levels to the same quarter last year; relative to last quarter, however, mortgage originations increased 25.76 percent.
VantageScore Solutions is the company that owns the intellectual property rights to the VantageScore credit scoring models. VantageScore is jointly owned by Equifax, Experian, and TransUnion. TransUnion is a global information solutions company that serves businesses and consumers in 33 countries worldwide.
The VantageScore DRI powered by TransUnion is wholly owned by VantageScore Solutions, and the TransUnion DRI Methodologies were created by TransUnion. Any use (altered or unaltered) of the DRI or TransUnion DRI Methodologies must be plainly marked as such, and must not be misrepresented as being the original version.