25% of U.S. consumers are considered “thin file” because they have fewer than 5 items in their traditional credit histories. By adding information from alternative data sources, such as on-time rental data, 23% may move from thin file to thick file status. Consider these 3 credit data types as you work with emerging consumers.
- Alternative financial services, such as payday and short-term installment loans.
- Rental data provides insight on some 20 million consumers.
- Account aggregation offers real-time data collection of financial information from a single location.
Alternative credit data can help you expand your approval population while maintaining loss expectations by identifying opportunities to underwrite emerging consumers, like millennials.
