A new tool called ScoreComplete™, developed by Equifax Canada, promises to make it easier for credit grantors to assess whether new applicants will be able to meet their future financial obligations.
With more than a quarter million new permanent residents accepted to Canada each year and with 2 million-plus Canadians between the ages of 15 and 19, that’s a massive number of potential members trying to build a credit history at a financial institution. Those numbers may mean robust business for credit unions, but traditional credit granting methods often are not able to score such consumers, according to Equifax Canada.
“They may be new to the country, just heading off to university or perhaps they’re looking to re-establish credit for other reasons,” says Equifax’s Nader Gorgi, VP of marketing and strategy.
“ScoreComplete is the first credit score of its kind that attempts to rate every consumer applicant.” The new credit score will be compiled using data sources and statistical modelling techniques, so lenders don’t need to use manual adjudication processes for an estimated 20 per cent of applicants. ◊