Sad to say, but access to and the building of credit is often an unfair shake – for millions of Americans. This leads to them either getting extremely high rates from predatory lenders or not being able to access any credit at all. This inhibits them from doing things like major purchases (staying renters vs homeowners), car loans, and being able to start businesses for instance. There’s got to be a better way and what better a time for a change as the rules are being rewritten due to the global pandemic.
Thankfully, industry credit score leader Equifax is working on a way to level the playing field. If alternative data that is typically not used in traditional credit scoring is used, up to 90% of previously unscorable people with thin credit files or were credit invisible could now be scored.
It’s a brave new world in the world of credit scoring – learn more in the visual deep dive below: