Is That Consumer a Good or Bad Credit Risk?

May 25, 2018 by Guest Contributor

According to our recent research for the State of Alternative Credit Data, more lenders are using alternative credit data to determine if a consumer is a good or bad credit risk. In fact, when it comes to making decisions:

  • More than 50% of lenders verify income, employment and assets as well as check public records before making a credit decision.
  • 78% of lenders believe factoring in alternative data allows them to extend credit to consumers who otherwise would be declined.
  • 70% of consumers are willing to provide additional financial information to a lender if it increases their chance for approval or improves their interest rate.

The alternative financial services space continues to grow with products like payday loans, rent-to-own products, short-term loans and more. By including alternative financial data, all types of lenders can explore both universe expansion and risk mitigation.

State of Alternative Credit Data