TAP OUR RESOURCES: Research studies

Impact of excluding public records from credit files

How would reducing the amount of public-records data in consumer credit files affect credit-scoring accuracy?

This study has the surprising answers.

The three national credit bureaus, Equifax, Experian and TransUnion, are considering changes to credit-data reporting that would significantly reduce the amount of tax-lien and civil-judgment information found in consumer credit files.

That’s good news for many consumers: The changes emerged from the bureaus’ National Consumer Assistance Plan, a program aimed at enhancing credit-report accuracy and making credit information more transparent and user-friendly for consumers. But the potential changes present a challenge to developers of credit scoring models: They reduce the amount of data scoring models can use to predict consumers’ likelihood of defaulting on their loans.

To understand how these changes could affect scoring-model accuracy, VantageScore simulated the most extreme form these changes could take—elimination from credit files of all civil-judgment and tax-lien credit file data—and examined the results on scores for four million U.S. consumers as generated by the VantageScore 3.0 model.

Inside the latest issue
March 2018
February 2018
January 2018
November 2017
October 2017
September 2017
Valued partners:
VantageScore Licensees:
Equifax Experian TransUnion