VantageScore Solutions, the company behind the VantageScore® credit scoring model, announced today that ReasonCode.org, a microsite which provides expanded explanations related to reason codes through a user-friendly search engine, has been completely translated into Spanish at esp.reasoncode.org. ReasonCode.org also now includes a "white board" video that plainly explains how reason codes work and what consumers can learn from them, which is also translated into Spanish.

Reason codes are 2-character numeric codes accompanied by a short statement that provides consumers information as to why their credit scores are not higher. Consumers are given the reason codes and statements in various credit score disclosure notices and adverse action letters sent by lenders, among other times when a credit score is provided to a consumer.

When VantageScore Solutions launched its newest model, VantageScore 3.0, the number of reason codes were reduced and written in plain-English, a deviation from traditional reason codes that were written in complex "industry-speak." VantageScore Solutions also launched ReasonCode.org at the time, which allows consumers to search specific reason codes to receive deeper explanations and tips for addressing credit behaviors that negatively impact their credit score.

Lenders Concerned About Disclosure Notices

Enhancements to ReasonCode.org were informed by a recent lender survey administered by VantageScore Solutions that showed disclosure notices, which include reason codes, frustrate both consumers and lenders alike. In an effort to better understand consumer needs and to help lenders better educate their customers VantageScore Solutions surveyed over 200 lenders nationwide. More than 75 percent of survey recipients expressed concern over the lack of consumer understanding about the score disclosure notices; and nearly 50 percent said that they were concerned about consumer frustration related to the notices.

Other results of the lender survey included:

  • Only 10 percent of lenders are providing reason codes translated in Spanish
  • 38 percent of lenders said that if tips for improving credit scores were provided, it would improve consumer understanding; and 33 percent said that if reason codes were written in clearer and easier to understand language it would also aid in understanding
  • Only 10 percent of lenders said their customers "understand reason codes well"

Bi-lingual Search Engine and 'White Board Video' Added

The Spanish-translated reason codes and expanded explanations are available through a user-friendly search engine that recognizes code language, facilitating easy-access to the expanded information. It was also designed to recognize both Spanish and English languages for returning results. Reason codes and explanations translated in Spanish are offered for all three VantageScore credit scoring models.

Finally, a video inspired by "white boarding" presentations also was added that describes reason codes, how to interpret them, and why a consumer may have received reason codes. The video has also been translated into Spanish.

"Score disclosure notices and the requirement to include reason codes are meant to empower consumers to better understand their credit profiles; however, for too long the language has been plagued with industry-speak and space limitations," said Barrett Burns, president and CEO of VantageScore Solutions. "When we launched VantageScore 3.0, we were committed to presenting this information in way that is easy for consumers to understand, limiting the number of reason codes and building a resource that provides deeper explanations. The latest enhancement and the translation into Spanish underscore our commitment to consumer education and our core belief that an informed borrower is a better borrower."

About VantageScore Solutions

VantageScore Solutions, LLC (www.vantagescore.com) is the independently managed company that owns the intellectual property rights to the VantageScore credit scoring models, including the recently announced VantageScore 3.0 model which provides up to 25 percent predictive improvement over earlier models and has the ability to formulate a score for 30 - 35 million previously unscoreable consumers. Initially developed by America's three national credit reporting companies (CRCs) -- Equifax, Experian and TransUnion -- VantageScore Solutions' highly predictive models use an innovative, patented and patent-pending tri-bureau scoring methodology that provides lenders and consumers with more consistent credit scores across all three national credit reporting companies.

VantageScore Solutions
Jeff Richardson, 203-363-2170
jeffrichardson@vantagescore.com