You will find 100 million customers who will be limited by the old-fashioned credit scoring practices used today either they lack a traditional credit history because they have a subprime score or. An expanded set of data sources, credit unions can not only increase their customer base but also do so responsibly by minimizing risk in 2020 and beyond by harnessing the power of new credit score models that go beyond traditional credit data and incorporate.
Expanded FCRA data, often called alternate information, is just a hot subject in the financing industry nowadays and there’s a legitimate cause for that. These brand new information sources makes it possible for loan providers to determine viable new clients while also gaining an even more accurate image of danger.
Relating to Experian’s 2019 State of Alternative Credit information report, 65percent of loan providers state they have been using information beyond the old-fashioned credit history to make a financing decision so we be prepared to see this number enhance somewhat. (suite…)