TransUnion Offering New Type of Score
TransUnion recently began offering a debt management score that can help credit counseling agencies and lending organizations tailor repayment programs.
The score takes information from a consumer's payment history and credit records, combines it with information from an initial credit counseling session and uses risk-based analytics to develop the score. That score shows how likely the borrower's file is to end up in bankruptcy, collections or charge-off.
The result is that lenders or counselors can tailor concessions to what specific consumers may need to get out of their current condition, such as lower minimum payments, reduced interest rates or removal of late penalty fees. Consumers who exhibit strong indicators for rehabilitation could become candidates for temporary restructuring or a simple debt management plan.
Copyright © 2005 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 15, No. 5, 6/05
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