What is it?
The Credit Optics Plus score is a new way to measure creditworthiness. It combines traditional credit data with extra information about how people use their identity, creating a more complete picture of a person’s financial behavior.
Why is it Different?
Traditional credit scores look at things like:
Your history of paying bills on time.
How much debt you have.
How much credit you’re using.
The Credit Optics Plus score adds a new factor: stability. This measures how consistently you use your personal information, like your name, address, and phone number.
Example: Someone who frequently changes their address or phone number might appear less stable, which could impact their score.
Who Benefits?
Lenders: They get a better tool to:
Approve more trustworthy borrowers.
Avoid risky ones.
Improve profits by reducing the number of delinquent accounts.
Example: A study showed that by using this score, lenders reduced the number of bad accounts by 46% without rejecting more good customers.
Borrowers:
Even if you don’t have a lot of credit history (a “thin file”), this score can help you qualify for loans because it uses alternative data.
Example: If you’ve only had one credit card but consistently use the same personal information, this score might help show you’re financially reliable.
Where It’s Used
The Credit Optics Plus score is tailored for specific industries like:
Auto loans.
Credit cards.
Wireless services.
It can also be used for general credit decisions.
Why It Matters
This score helps lenders make smarter decisions and gives borrowers, even those with limited credit history, a better chance to prove their reliability. It's a step toward fairer lending practices in a competitive economy.
For more information, check out TransUnion or ID Analytics.
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