Boosting Credit Scores Through Alternative Data

Maintaining a strong credit score can be the key to financial success in the United States. Unfortunately, many people have thin or unscorable credit files due to the traditional ways of determining credit. Alternative data is the key to changing that, as it offers an all-encompassing view of a consumer’s life. Examples of this, such as specialty finance or utility data, can bolster a credit file so that more Americans can benefit from the luxury of a positive credit score.

 

Studies show that nearly 1 in 3 adults in the United States have thin files or are credit invisible. The most common groups of people in this situation are young people, immigrants, or those who have recently divorced or been widowed. This credit invisibility can be costly, explaining the significance of alternative data in today’s economy.

 

Incremental populations will become scorable with each use of alternative data whilst incorporating AI. With the power to unlock immense economic potential, these solutions will move millions into scorable credit bands.