With subprime loans now accounting for about 32% of approved auto originations, “trust but verify” is good advice when it comes to evaluating risk and determining rates for prospective customers. Despite our modern information age in which data is expected to be available on-demand, most dealers and lenders still rely on traditional credit scores and customer-reported details, a method that unfortunately might not generate the most accurate or comprehensive assessment of a borrowers’ qualifications.
In this whitepaper, Equifax auto marketing expert Jenn Reid leverages our unique data assets to explore how verification through alternative data sources can provide greater accountability, transparency and detailed insight into borrowers’ qualifications. Learn how the following four specific attributes correlate to borrower credit-worthiness:
* Income verification
* Employment tenure
* Pay frequency
* Employment disruptions
Visit equifax.com/automotive for more