VantageScore’s ability to score 98 percent of the credit-eligible population and to leverage advanced segmentation strategies makes it an ideal prospecting tool. It can help card issuers reach more creditworthy borrowers, including newcomers to the credit market and infrequent users of credit, many of whom are invisible to competitors who use conventional credit scoring models.
When prospects become applicants, VantageScore also adds confidence to the approval process. Its precision helps issuers ensure they approve only qualified candidates and that they don’t turn down creditworthy candidates who are a strategic fit.
The VantageScore model’s industry-leading segmentation techniques assign consumers with common behaviors to 13 unique scorecards, including three specific to sparse users of credit. (Two of these specialized scorecards focus on “thin-file”consumers; the other focuses on consumers without recent credit activity.) While conventional scoring models may require supplemental specialty scores to reach a wide applicant universe, VantageScore lets issuers market cards widely without additional implementation challenges.