TransUnion Canada launches new credit score for inclusion

TransUnion Canada has launched a new credit score called the TruVision Trended Risk Score. This score is designed to help newcomers to Canada and young Canadians access credit more easily. It provides lenders with better insights into consumers’ borrowing and payment behaviors. The TruVision score uses data collected after the pandemic to create a more complete picture of creditworthiness. It looks at more than 100 factors to give lenders information on how consumers manage their credit. This new approach helps lenders make more informed decisions when offering credit. Juan Sebastian D’Achiardi, TransUnion Canada’s regional president, highlighted that new Canadians and young people represent a large and growing part of Canada’s population. The score will help these consumers build their credit profiles more quickly, increasing their access to credit opportunities. Statistics Canada reports that immigration is a key driver of Canada’s population growth. New-to-credit consumers, who are just starting their credit journeys, accounted for a significant share of new credit cards and products in 2024. In particular, the Gen Z population, born between 1997 and 2012, has shown the fastest growth in credit usage. However, Gen Z consumers also face higher risks of delinquency compared to older generations. This presents both challenges and opportunities for lenders, who can use advanced tools to manage these risks effectively. Pamela Dodaro, TransUnion Canada’s chief product officer, emphasized the importance of adapting credit strategies to support young Canadians and newcomers. TransUnion operates globally and aims to assist businesses in making confident lending decisions. Through innovative solutions, they work to foster economic opportunities and personal empowerment for people around the world.