In an effort to understand consumer needs better and help lenders educate their customers, VantageScore® Solutions surveyed more than 200 lenders nationwide on the topic of score reason codes. The results of the survey showed:
- More than 75 percent of lenders expressed concern over the lack of consumer understanding of score disclosure notices
- 33 percent said that if reason codes were written in clearer and easier-to-understand language, they would be easier to understand
- Only 10 percent of lenders said their customers “understand reason codes well”
The results reinforce the need for lenders to use a risk score that is both highly predictive and consumer friendly.
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