TransUnion Beefs Up Credit Reports As Lenders Seek More Info

Credit rating giant TransUnion is rolling out a new service it says will save time and money for lenders and other businesses seeking credit information on potential borrowers and other customers.

With the launch of the new TransUnion Income and Employment Verification service, the Chicago-based credit rating agency said for the first time its credit reports will also include access to verified income and employment data.

TransUnion said it is launching the new service in partnership with “one of the leading payroll providers in the U.S.,” which it did not identify further.

That collaboration will provide TransUnion with access to tens of millions of employment records, with the data updated every pay cycle, the company noted in its product announcement launch.

“The economic downturn and rising unemployment mean that financial institutions and other organizations are seeking a more complete picture of the consumer as part of their acquisition and risk mitigation strategies,” Tim Martin, chief global solutions officer at TransUnion, said in a press release.

Martin noted the current system can often prove “cumbersome” to banks and other lenders while also at times proving frustrating to consumers.

“The current process is cumbersome as consumers often have to provide their own data, or lenders subscribe to separate processes — which could prohibit or slow consumers from accessing credit products and offers,” Martin said. “TransUnion Income and Employment Verification provides a much-needed alternative that improves the overall consumer experience.”

Meanwhile, TransUnion’s new service comes at a time when a large percentage of the American workforce is in flux, with millions of people either out of work or starting jobs with new employers after getting laid off amid the coronavirus-triggered downturn.

In a recent interview with Karen Webster, Symend Co-Founder and CEO Hanif Joshaghani and Co-Founder Tiffany Kaminsky reflected on some of the challenges the credit scoring sector is facing.