Leveraging the possibilities of alternative credit data to enhance the underwriting process percolated several times during industry events earlier this year. On Tuesday, FactorTrust responded to the inherent need for increased credit opportunities for non-prime consumers by rolling out a new tool the consumer data provider is calling LendProtect Auto Score.

FactorTrust explained the LendProtect Auto Score is a credit risk solution for auto finance companies serving non-prime consumers that is delivered independently of the three largest credit bureaus and is based on FactorTrust’s alternative credit data. The core data that is used to define a consumer’s score includes:

— Unique alternative tradeline data
— Application information
— Stability metrics
— Payment data

FactorTrust chief executive officer Greg Rable insisted those four data points are not available through the major credit bureaus. Rable indicated expansions of the score this new tool can produce are available. That expansion can include other data points such as public records.

“The best indicator of future performance is past performance. In the past, lenders serving non-prime consumers have not had a full picture of a consumer’s credit history,” Rable said. “That changes with the LendProtect Auto Score, which opens up more auto credit access to millions of people who need access to transportation.”

FactorTrust reiterated the depth of the potential market where LendProtect Auto Score could be useful. The company pointed out there are more than 50 million non-prime consumers in the U.S. who do not choose to use traditional credit opportunities due to convenience, lack of credit history or lack of a relationship with a credit provider.

FactorTrust also referenced a study by the Credit Union National Association, which estimated that this same population of people can increase their income by as much as 25 percent if they have access to reliable transportation.

And to help finance companies cater to this demographic and potentiall enhance quality of life, Rable said, “This score is purpose-built for the non-prime auto area.

“The consumer characteristics captured in the LendProtect Auto Score are tuned to the unique consumer profiles in this specific market,” he continued. “Now non-prime consumers that have low FICO scores can benefit through increased access to credit and better rates, when positive alternative credit history is found in our database.”

FactorTrust went on to mention that finance companies that leverage the LendProtect Auto Score now can offer consumers more flexibly priced loans, while at the same time mitigate losses through the incorporation of alternative credit data.

Using proprietary alternative data, the LendProtect Auto Score can capture the highest-risk consumers in lower score bands and promotes the lowest-risk consumers into higher score bands. This process can allow finance companies that are working with consumers that would have identical profiles within the three large credit bureaus to be decisioned more accurately.

“We are proud to offer the auto industry a solution to help them better serve non-prime consumers. Through this product we are further establishing FactorTrust as the leading provider of alternative credit data for the auto lending industry,” Rable said.

FactorTrust added the LendProtect Auto Score is compliant Fair Credit Reporting Act and the Equal Credit Opportunity Act.

Finance companies that are interested in learning more can visit www.factortrust.com.