Alternative credit information provider FactorTrust announced earlier this week the addition of United Auto Credit to its growing number of clients enlisting alternative credit data to help qualify and evaluate risk in their underwriting process.

Executives explained trends in the non-prime automotive segment have financial service providers seeking ways to identify and interact with underbanked and non-prime consumers through new data sources.

With FactorTrust’s database of more than 250 million unique loan transaction records, United Auto Credit, the California-based, non-prime automotive financial service provider who serves dealers and their customers across the U.S., now has a more holistic view of non-prime consumers and their ability to repay loans.

The unique credit data attributes FactorTrust has accumulated throughout the past 10 years is largely unavailable via traditional sources.

“FactorTrust’s proprietary data of non-prime consumers—specifically our loan performance data—is proven to be more predictive than the Big 3 bureaus; because our data isn’t reported to the Big 3, it’s new data to the market,” FactorTrust chief executive officer Greg Rable said . 

"This alternative credit data speaks to today’s sophisticated financial service providers who need new, unique data sources to make faster and more accurate decisions about their customers and gives them products and pricing that they deserve," Rable continued in a news release. “Depending solely on Big 3 bureau data and traditional credit scores is just not keeping up with the current competitive landscape in lending."

United Auto Credit chief executive officer Jim Vagim added, “The inclusion of FactorTrust’s alternative credit data into our cutting-edge technology will help us achieve our mission of providing more credit options and excellent customer service to consumers within our common-sense lending strategy.

“The FactorTrust data study helped us understand how we can mitigate losses and approve more creditworthy consumers, allowing us to better serve our network of independent and franchised dealers,” Vagim went on to say.

For automotive financial service providers wanting to know more about the uses of alternative credit data in their credit strategy, FactorTrust said it will conduct a secure data study at no cost. Connect with FactorTrust at www.FactorTrust.com or (866) 910-8497.