According to VantageScore® Solutions’ annual validation study, VantageScore 3.0 scores 36 million incremental consumers considered unscoreable by conventional credit scoring models. The Gini coefficient for the newly scored population is 52.3, indicating a high level of predictiveness.
The newly scored population is made up of 4 groups:
- New entrants — consumers with trades that are 6 months or younger (1 million)
- Infrequent users — consumers who have not used credit within the last 6 months (11 million)
- Rare credit users — consumers who have not used credit in the last 24 months (11 million)
- No trades — consumers with only public record and collections records (13 million)
The latest validation results reinforce the importance of using advanced credit scores in order to profitably grow portfolios while opening the gateway of credit for consumers.
