Consumer Credit Score Migration: Will the Consumer I Approve Today Still be Credit-Worthy Tomorrow?
A key question for lenders using credit scores is: How will future events impact a consumer’s credit score? An obvious concern is that the consumer was approved for credit given their score exceeded the lender cut-off at the time of evaluation, but may fall below the cut-off soon after the evaluation time.
Lenders are also interested in the number of consumers who fail to obtain credit because their scores fall below a lender’s minimum, but then improve their credit scores to a level greater than the lender’s minimum either 3 or 12 months later.
Read the full whitepaper from VantageScore here: