VantageScore said the results demonstrate that rent is both a strong indicator of repayment risk and a tool for greater financial inclusion. The study analyzed the impact of this positive rental data on the renter's VantageScore 4.0 credit score. It found that adding consistent, on-time rent payments to credit files improves the predictive performance of the VantageScore 4.0 credit scoring model. The data helps to identify up to 11% more defaults in higher-risk score ranges and delivers a 3.7% increase in overall predictive accuracy.
The outdated business credit scoring models are shutting out promising UK startups from crucial funding, urging a cultural and systemic rethink to match modern entrepreneurship.
