Equifax Helps Credit Card Issuers Expand Access to Credit with New Insight Score for Credit Cards

Rhea-AI Summary

Equifax (NYSE: EFX) has launched the Insight Score for Credit Cards, enabling credit card issuers to expand access to credit by incorporating alternative data from over 430 million utility and telecom accounts. This new scoring method can potentially elevate 5.5 million U.S. consumers from unscorable to prime credit offers, enhancing financial inclusion. Additionally, it allows lenders to approve 5% to 7% more applicants, mitigating risk with Equifax's NeuroDecision Technology. This initiative comes at a critical time when many Americans are seeking credit.

Positive

• Introduction of Insight Score may lead to 5.5 million consumers moving to prime credit offers.
• Lenders can approve 5% to 7% more credit card applicants, increasing potential revenue.
• Supports financial inclusion efforts, aligning with market demand for accessible credit solutions.

Negative

• None.

ATLANTA, June 24, 2021 /PRNewswire/ -- Equifax (NYSE: EFX) is helping credit card issuers expand access to credit with the new Insight Score for Credit Cards. This industry-specific credit risk score combines traditional credit data with differentiated data that only Equifax can provide— utility, pay TV, Internet and wireless phone payment history for more than 430 million accounts from the National Consumer Telecom & Utilities Exchange (NCTUE). Layering NCTUE data with traditional credit information can provide a more complete financial picture of card applicants, helping lenders expand their view into consumers with little to no credit history and approve more customers who might previously have been turned down for a credit card account.

More than 30 million consumers are not scorable by credit data. By adding NCTUE data to the credit decisioning process, Equifax estimates that 5.5 million U.S. consumers would be able to move from unscorable or subprime into prime or near-prime offers. Reaching these consumers is critical to helping lenders reach new customers and foster greater financial inclusion within the U.S. economy.

"With Insight Score for Credit Cards, card issuers are able to score more consumers who may have faced credit-related barriers in the past," said Mark Luber, Chief Product Officer for United States Information Solutions (USIS). "This is another way that Equifax is helping lenders say 'yes' with more confidence. While credit reports remain a strong indicator of credit history and past financial reliability, alternative data from NCTUE has the potential to help open up more financial opportunities."

Equifax operates and manages the NCTUE database as a vendor on behalf of NCTUE. Insight Score for Credit Cards layers NCTUE data, traditional credit data and patented Equifax NeuroDecision^® Technology. NeuroDecision Technology provides more predictive insights with models designed exclusively for the credit card industry, enabling lenders to minimize risk in their portfolios and approve 5 to 7 percent more card applicants, according to Equifax data.

The Insight Score for Credit Cards offering is one of several Equifax solutions designed to promote greater access to credit at a time when many Americans need it most. Equifax is committed to removing barriers to financial inclusion, supporting a number of industry initiatives designed to provide underserved populations with the same opportunities to succeed and benefit from the nation's financial system as others.

For more information on Insight Score for Credit Cards, visit Equifax.com.

ABOUT EQUIFAX INC.
At Equifax (NYSE: EFX), we believe knowledge drives progress. As a global data, analytics, and technology company, we play an essential role in the global economy by helping financial institutions, companies, employers, and government agencies make critical decisions with greater confidence. Our unique blend of differentiated data, analytics, and cloud technology drives insights to power decisions to move people forward. Headquartered in Atlanta and supported by more than 11,000 employees worldwide, Equifax operates or has investments in 24 countries in North America, Central and South America, Europe, and the Asia Pacific region. For more information, visit Equifax.com

FOR MORE INFORMATION
Kate Walker for Equifax
mediainquiries@equifax.com

 

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SOURCE Equifax Inc.

FAQ

What is the Insight Score for Credit Cards by Equifax?

The Insight Score is a new credit risk score that combines traditional credit data with alternative data from utility and telecom accounts to help lenders assess creditworthiness.

How many consumers can benefit from Equifax's Insight Score?

Equifax estimates that 5.5 million U.S. consumers could transition from unscorable or subprime to prime credit offers.

What percentage of additional card applicants can lenders approve using the Insight Score?

Lenders can approve 5% to 7% more credit card applicants with the Insight Score.

When was the Insight Score for Credit Cards announced?

The Insight Score for Credit Cards was announced on June 24, 2021.

How does the Insight Score enhance financial inclusion?

By integrating alternative data, the Insight Score allows lenders to extend credit to consumers who may previously have been denied due to lack of traditional credit history.