STAMFORD, Conn.--(EON: Enhanced Online News)--VantageScore Solutions, the company behind the VantageScore® credit scoring model, announced today that it recently has been awarded two patents: U.S. Patent No. 8,560,434 for the model’s “Methods and Systems for Segmentation Using Multiple Dependent Variables” and U.S. Patent No. 8,489,502 for the model’s “Methods and Systems for Multi-Credit Reporting Agency Data Modeling.”
“Our now patented approach allows lenders to minimize risk at the outset, rather than trying to manage exposure once it’s on the books”
Patent No. 8,560,434 was issued October 15, 2013. This patent recognizes model characteristics that amplify performance associated with the origination of credit accounts. More specifically, the patent focuses on the composition of behaviors in each segment which are optimized such that performance for originations has improved over and above conventional methods.
“Our now patented approach allows lenders to minimize risk at the outset, rather than trying to manage exposure once it’s on the books,” said Sarah Davies, senior vice president of VantageScore Solutions for analytics, product management and research.
Patent No. 8,489,502 was issued July 16, 2013. This patent, and the previously granted patents providing intellectual property protection for the firm’s methods and systems of characteristic leveling (U.S. Patent 7,801,812 and 7,974,919), multi-credit reporting agency data modeling (U.S. Patent 7,930,242), and methods and systems for score consistency (U.S. Patent 8,055,579), encapsulate the VantageScore model’s ability to generate more consistent credit scores.
Traditional credit scoring models use varying definitions of trade data across the three national credit reporting companies (CRCs), which contribute to inconsistent credit scores. VantageScore Solutions’ patented characteristic leveling facilitates the model’s ability to be applied universally across all three CRCs, resulting in more consistent scores.
“The VantageScore model is the embodiment of innovation and we are extremely pleased to be able to protect that innovation and allow lenders to take advantage of new advancements in the area of predictive analytics,” said Barrett Burns, President and CEO of VantageScore Solutions. “Providing the highest level of accuracy, consistency and segmenting consumers appropriately enables lenders to have the highest level of confidence in their risk and credit decisions.”
VantageScore Solutions also has several other technologies that are patent pending.
About VantageScore Solutions
VantageScore Solutions, LLC (www.vantagescore.com) is the independently managed company that owns the intellectual property rights to the VantageScore credit scoring models, including the recently announced VantageScore 3.0 model, which provides up to 25 percent predictive improvement over earlier models and has the ability to formulate a score for 30–35 million previously unscoreable consumers. Initially developed by the three national CRCs, Equifax, Experian and TransUnion, VantageScore Solutions’ highly predictive models use an innovative, patented and patent-pending scoring methodology that provides lenders and consumers with more consistent credit scores across all three CRCs.