VantageScore Solutions has unveiled its new credit score model, VantageScore 2.0, which takes into account the significant change in consumer credit repayment behavior of recent years, company officials said.
Barrett Burns, VantageScore Solutions president and chief executive, said, “We’ve recently experienced a variety of economic scenarios, including an increase in foreclosures in the housing market and changing payment priorities among consumers.”
The new model was built using a development sample compiled from two performance timeframes, 2006 – 2008 and 2007 – 2009, with each timeframe contributing 50% of the sample, thus reflecting more recent credit conditions.
Using multiple performance windows reduces the model’s sensitivity to highly volatile behavior in a single timeframe, explained Sarah Davies, senior vice president of product management, analytics and research for VantageScore Solutions.
Lenders can contact any of the three repositories to begin testing VantageScore 2.0, which will be available for use by January 2011. VantageScore is currently available to consumers from Experian and TransUnion. Those companies will create their own timelines individually regarding the availability of VantageScore 2.0 for consumers.
