More Borrowers a Possibility with Changes in Credit Scoring
Ray Birch writes, in a January 5, 2020 article on cutoday.info, “Experian early this year will introduce a new credit score product it says will help financial institutions make loans to more credit invisible and thin-file consumers—a huge market of more than 100-million people.”
Credit unions will find more opportunities to extend credit to members that may not have qualified under traditional credit scoring models. Managers will need to have proven risk management processes in place before venturing into unfamiliar loan programs.
TCT’s Risk-Based Loan Pricing tool and Credit Migration tool are mandatory for credit unions looking to expand their loan services and for managing the additional risk. Also, TCT’s Budgeting and Profitability Projection tools allows credit union managers the ability to project the impacts proposed new services will have on profitability and equity.