Experian acknowledged that traditional credit attributes provide immense value for auto finance companies when making decisions. But when used alone, Experian insisted they are limited to capturing credit behavior during a single moment of time.
To add a deeper layer of insight, Experian recently unveiled what company executives called the industry’s first tri-bureau trended attributes, aimed at giving finance companies a wider view into consumer credit behavior and patterns over time.
Ultimately, Experian insisted this enhanced detail can help auto finance providers expand into new risk segments and better tailor credit offers to meet consumer needs.
An Experian analysis shows that custom models developed using Trended 3D attributes provide up to a 7-percent lift in predictive performance when compared with models developed using traditional attributes only.
“While trended data has been shown to provide additional insight into a consumer’s credit behavior, lack of standardization across different providers has made it a challenge to gain those insights,” said Steve Platt, Experian’s group president of decision analytics and data quality.
“Trended 3D makes it easy for our clients to get value from trended data across all three credit bureaus in a consistent manner, so they can make more informed decisions across the credit life cycle and, more importantly, give consumers better access to lending options,” Platt continued.
Experian’s Trended 3D attributes help finance companies unlock valuable insights hidden within credit reports.
For example, two people may have similar balances, utilization and risk scores, but their paths to that point may be substantially different. The solution can synthesize a 24-month history of five key credit report fields — balance, credit limit or original loan amount, scheduled payment amount, actual payment amount and last payment date.
As a result, Experian explained that finance companies can gain insight into:
—Changes in balances over time
—Migration patterns from one tradeline or multiple tradelines to another
—Variations in utilization and credit limits
—Changes in payment activity and collections
—Balance transfer and debt consolidation behavior
—Behavior patterns of revolving trades versus transactional trades
Additionally, Trended 3D leverages machine learning techniques to evaluate behavioral data and recognize patterns that previously may have gone undetected.
To learn more information about Experian’s Trended 3D attributes, go to this website.