Loading...

4 Types of Alternative Credit Data You Should Be Using Now

Published: April 26, 2018 by Sacha Ricarte

Alternative credit data sources make it possible for lenders to gain a more holistic view of existing and potential client bases, enabling them to better determine the risk of lending to someone with little or no credit history.

These sources also can provide lenders with a competitive edge by preparing them to be better equipped to mitigate losses, expand their scope of potential applicants, give them another look at the creditworthiness of previously-denied applicants, and enable them to properly adjust credit terms and pricing to better speak to compatible consumers.

“Experian is a big supporter of the widespread reporting of alternative data—including, rental payments, utility payments and cellular telephone payments to name a few,” said Alex Lintner, president of Experian’s Consumer Information Services.

Here are four FCRA-compliant alternative credit data sources to consider when evaluating consumers for credit:

Alternative Financial Services: Alternative financial credit information, including payday and short-term installment loans and inquiries, on the majority of the United States’ subprime population.

Rental Data: RentBureau includes detailed, positive and negative rental payment history information on more than 18 million consumers in the United States.

Extended View Score: A risk model designed to evaluate the creditworthiness of thin-file and no-file consumers who have little to no traditional credit history.

Account Aggregation: Permissioned by the consumer, a real-time data collection of his/her financial accounts (bank, credit card, investment and business) in a single location to digitally verify income and assets.

Tapping into these resources can give deeper and richer results—improving overall data analytics and, subsequently, possibilities for future lending.

Related Posts

The jump to the cloud means that lenders are suddenly more capable than ever at making analytically sound and more financially inclusive­ decisions.

Published: November 19, 2020 by Jim Bander

The housing industry has been impacted by the global pandemic. Last month, 9.9 million Americans were not up-to-date on their rent or mortgage payments.

Published: November 19, 2020 by Jesse Hoggard

Download our report to learn why alternative credit data is supplemental and essential to consumer lending and how it’s being used by consumers and FI's.

Published: September 17, 2020 by Laura Burrows

Subscription title for insights blog

Description for the insights blog here

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Categories title

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.

Subscription title 2

Description here
Subscribe Now

Text legacy

Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old. Richard McClintock, a Latin professor at Hampden-Sydney College in Virginia, looked up one of the more obscure Latin words, consectetur, from a Lorem Ipsum passage, and going through the cites of the word in classical literature, discovered the undoubtable source.

recent post

Learn More Image