Equifax Introduces New OneScore Scoring Model to Help Expand Access to Credit and Drive Financially Inclusive Lending

Rhea-AI Summary

Equifax has launched OneScore, a consumer credit scoring model that integrates traditional credit data with telecommunications, utility, and specialty finance data. This innovative model seeks to enhance access to credit for U.S. consumers, potentially increasing credit scores by up to 25 points and expanding the scorable population by over 20%. OneScore utilizes advanced analytics to assess an additional 8.8 million credit-seeking consumers compared to traditional methods. By leveraging previously unavailable payment history, it aims to offer lenders a more comprehensive financial picture, supporting financially inclusive lending.

Positive

• OneScore integrates traditional and alternative data, potentially increasing credit scores by up to 25 points.
• Expands the scorable population by over 20%, enhancing access to credit for more consumers.
• Utilizes advanced analytics and machine learning to assess 8.8 million additional consumers compared to traditional models.

Negative

• None.

New Offering Is First to Combine Traditional Credit Data With Telecommunications, Utility, Pay TV and Speciality Finance Data; Builds on Equifax Leadership in Alternative Data to Boost Scorable Population of Credit Seeking U.S. Consumers

ATLANTA, March 27, 2023 /PRNewswire/ -- Equifax^® (NYSE: EFX) continues to support financially inclusive lending with the launch of OneScore, a new consumer credit scoring model that combines the company's leadership in alternative data insights with the power of the Equifax Cloud™ to provide U.S. lenders and service providers with a more comprehensive financial picture of credit seeking consumers. OneScore is unique to the industry because it is the first single score to combine traditional credit history with telecommunications, pay TV and utility payment data on over 191 million consumers, as well as Equifax DataX and Teletrack specialty finance data on 80 million consumers - including payment history from non-traditional banks and lenders - potentially increasing credit scores by up to 25 points and the scorable population by more than 20 percent.

"Equifax has invested billions of dollars into unique data, verification insights, fraud reduction tools, powerful modeling techniques and cloud-based technology solutions that empower our customers to bring greater access to financial opportunity to more people in more places," said Mark W. Begor, CEO of Equifax. "OneScore is a testament to the power of the Equifax Cloud in driving innovation that can increase the visibility of consumers to help expand access to credit and create new, mainstream financial opportunities."

While credit reports remain a strong indicator of credit history and past financial reliability, Fair Credit Reporting Act (FCRA) compliant information that is not included in traditional credit report data has the potential to help responsibly expand consumer access to credit opportunity and support a more inclusive economy.

The majority of U.S. adults have at least one utility bill or cell phone in their name, making access to utility payment provides a widespread and powerful indicator of past financial reliability. When combined with additional speciality finance data on more than 80 million credit invisible, unscorable, thin-file and credit rebuilding consumers from DataX and Teletrack, the opportunity to expand access to credit through alternative data insights extends even further. Over 99 percent of the tradelines, payments, and inquiries captured in DataX and Teletrack do not exist in the traditional credit file.

Powered by advanced analytics and machine learning, OneScore is able to score an estimated 21 percent more - or 8.8 million credit seeking consumers - than when compared to traditional scoring models. In addition, approximately 15 percent more or 6.3 million applicants that are considered subprime, no hit or thin file could be approved for a near prime or prime offer without increasing risk when OneScore is used in combination with a traditional risk score.

"We understand that a single financial opportunity can be a critical step to establishing individual financial health and generational wealth that can change the trajectory and livelihood of families and communities for generations," said Joy Wilder Lybeer, U.S. Information Solutions (USIS) Chief Revenue Officer and Senior Vice President, Global Partnerships Equifax. "OneScore is designed to provide lenders and service providers with a more robust financial picture of consumers who are actively seeking new financial services - helping people to showcase payment history that may not have historically been factored into loan decisioning to obtain new financial opportunities or better rates."

OneScore is available now to U.S. lenders and service providers. More information can be found here. Equifax also serves consumers and customers in Australia and New Zealand with a next-gen credit score leveraging alternative data insights, Equifax One Score.

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 nearly 14,000 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:
Rebecca Paul-Martin for Equifax
mediainquiries@equifax.com

 

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SOURCE Equifax Inc.

FAQ

What is OneScore by Equifax?

OneScore is a new consumer credit scoring model that combines traditional credit data with telecommunications, utility, and specialty finance data to provide a more comprehensive financial picture.

How does OneScore improve credit access for consumers?

OneScore can increase credit scores by up to 25 points and expands the scorable population by more than 20%, helping more consumers gain access to credit opportunities.

When was OneScore launched by Equifax?

OneScore was launched on March 27, 2023.

How many additional consumers can OneScore assess compared to traditional scoring models?

OneScore can assess approximately 8.8 million more credit-seeking consumers compared to traditional scoring models.

What are the main benefits of using OneScore for lenders?

OneScore helps lenders gain a more robust financial picture of consumers, including those with limited traditional credit history, enabling them to offer better rates and opportunities.